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SBA Loan. Definition: Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for . SBA financing programs vary depending on a borrower's needs.
Loans provided by the U.S. Small Business Administration (SBA) offer some of the best rates among all small business financing options. The SBA offers a variety of loan and line of credit programs, but its two most popular loan programs are the 7(a) and CDC/504 loans.