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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.
As mentioned in our Ultimate Guide to SBA Loans, there are two primary types of SBA loans: 7A loans and CDC / 504 Loans. SBA 7A loans can be used for a variety of purposes, while CDC / 504 loans are specifically for the purchase of real estate.