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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.
There are 6 main types of SBA loans: 7a General Small Business Loans â This is most common type of SBA loan suitable for most businesses. It can be used for a variety of purposes, such as working capital, buying a franchise, refinancing debt, etc.