The general SBA loan program is officially known as the 7(a)
Loan Guarantee Program. This means the SBA guarantees business
loans rather than makes them. You still have to borrow the money
from a bank or another lender, but the SBA guarantee increases your
chances of getting the funds. The highest possible guarantee is
normally $750,000 or 75 percent of the total loan amount, whichever
is less. For loans of less than $100,000, the guarantee usually
tops out at 80 percent of the total loan.
SBA policy prohibits lenders from charging many of the usual
fees associated with commercial loans. Still, you can expect to pay
a one-time guarantee fee and a yearly servicing fee, which the
agency charges the lender and allows the lender to pass on to
you.