The loans offered by the US Small Business Administration are regarded as the most reliable funding option available for the startup companies.
Affordable repayment option as well as low rates of interest seems to be the excellent choice for the companies who are in need of monetary support.
However it is important to remember that this government agency of the United States does not pay loans to small companies directly.
However, it develops effective guidelines for the funds that are given by their partners that include community development companies, moneylenders as well as micro lending companies.
The Small Business Administration also gives the warranty that the funds granted by these companies will be repaid within the scheduled period of time.
Although these loans are the best financial option for the startup companies, the other companies that have wide access to other types of funds cannot access these funds.
Here are the four types of SBA loans that are available for the businesses that cannot access to other kinds of loan options.

• The objective of SBA 7 (a) program is to allow the small business to acquire money easily.
  It is the most flexible and the basic type of loan option that is available for a business.
  It can be used for multiple business purposes such as purchase of equipment or furniture, renovation of buildings as well as repayment of debt and other relevant purposes.
  The maturity of this type of fund is almost ten years for capital repayment as well as up to twenty five years for repayment of permanent assets.
  
• SBA 504 loan allows the startup businesses to get permanent and long term funding for the purchase or renovation of key assets such as buildings, lands and so on.
  This type of loan is structured where the SBA offers forty percent of the total cost of the project and the participating lending organization covers nearly fifty percent of the cost.
  Plus, the borrower pays nearly ten percent of the total cost of the project.
  This type of program is used to buy buildings, long term devices, build or even renovate facilities as well as repay the debt with the purpose of expansion of business.
  Under this loan program, the small business qualifies if it shows an average income of nearly five million dollars after deduction of income tax for the previous two years before submission of a loan application.
  
• Microloan program offered by the Small Business Administration is an exclusive loan that is available for small business.
  A borrower can use this type of loan to buy capital, fixtures, supplies, machines and equipment.
  This government organization ensures that this type of fund is available for the nonprofit organization who is experienced in dealing with technical operation.
  However, it is important to remember that this type of fund is not used for the purchase of property or for repayment of current debt.
  
• The Small Business Administration offers low interest fund to the small businesses that are affected by disaster.
  It is used to repair damaged property, equipment as well as different types of business assets.