[amobilebiz]

Everyone thinks that an SBA loan is "easier" to get or that any business can go right out and get one. That is far from the case. The process of getting an SBA loan is the same with a standard bank loan, except you now have an added layer with the SBA application. You first must find a bank that is an authorized SBA lender (not every bank is, but all big banks are). You will then go through the bank's standard screening process (i.e. credit check, biz plan review, collateral) and simulataneously have your application submitted to the SBA for approval. If both the bank and the SBA approve your loan you get your money from the bank. Also, the bank may approve your loan contingent on the SBA approval.

SBA loans do require collateral (i.e. home, equipment, etc...). That is why typically businesses use them to finance equipment or buildings. The SBA loans, and bank loans for that matter, are not geared towards "web startups". You will have a much easier time convincing your friends and family to lend you a few thousand for the next great internet company then you will have convincing a bank manager.

The above is just my two cents, I have never applied for or received a SBA loan. I have, however, considered getting one a few years back. I had a lengthy discussion with my bank manager and decided after it was not worth the hassle. I just begged friends and family instead and the turnaround time was much quicker.