An SBA loan is a loan provided by a bank or other lender that has been guaranteed (backed) by the U.S. Small Business Administration. (The SBA does not make loans.) The guarantee assures the lender that it will be repaid a portion of the money it loans even if the borrower fails to repay the loan. As a business owner, you will make a request to a lender (usually your local bank) for funds needed for your business. The lender will evaluate your request and decide whether it can make the loan to you on its own. If a lender feels the request has merit but cannot make the loan without additional support, then the lender can request an SBA guarantee. SBA considers issues such as collateral, credit, equity, and loan repayment ability when making a determination on a loan. SBA does not provide grants to small businesses. With the exception of disaster loans, SBA does not provide direct loans. Your SBDC consultant can provide more information on SBA loans.