What is an SBA Line of Credit?

Small businesses have many funding options available to them, from conventional loans to revenue-based financing to their owners’ personal assets. One of the leading business loan types are those backed by the United States Small Business Administration (SBA). SBA loan programs are partially guaranteed by the SBA, meaning that, should a borrower default on a loan, the government will reimburse a lender for a significant percentage of the loan amount. This protects lenders and can help businesses gain access to capital. In 2023, the SBA provided more than $33 billion in loans to more than 57,000 small businesses.