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What SBA loan should I apply for?

Updated: Feb 22, 2022

Although small business owners are interested in applying for an SBA loan, routinely they do not know where to start? In this article, we describe the different types of SBA loans and offer a list of lenders who directly fund SBA loans.

By Thomas Tramaglini, Managing Director at BRP Onesta

About Thomas Tramaglini

SBA Loans – What type is best for you?

SBA loans have grown in popularity, especially since the pandemic. The number of small businesses who received funding from popular programs such as the Payroll Protection Program and the Economic Injury Disaster Loan, a previous analysis we did suggests that nearly 1 in 2 business owners have received funding from an SBA product.

However, don’t be fooled! Just because you received an EIDL or PPP loan does not mean you will qualify for a traditional SBA loan.

In fact, in 2021 the SBA reported that there were 32 million small businesses in the United States and only about 12,000 received an SBA 7(a) loan. So, about 0.00038% of small businesses in the country did not receive an SBA loan. Since only about 12,000 SBA loans (7(a)) were doled out in 2021 it would suggest that banks are not so motivated to lend to small businesses.

Because this number is so low many small business owners choose to borrow using online or alternative lending options.

If you are a small business owner and you want loan options that are similar to an SBA but without the barriers of SBA, contact our team of advisors now.

Yet, if you are going to apply for an SBA loan, you should know what you are applyi