SBA loans are among the most cost-effective financing options available to small businesses, backed by government guarantees that reduce lender risk. These loans typically offer lower interest rates, longer repayment periods, and structured programs such as SBA 7(a), SBA 504, and microloans, each suited for different business needs.
The trade-off is time and documentation. SBA loans are best for businesses with strongfinancials, patience, and long-term planning horizons, as approval processes can be lengthy. For those who qualify, however, SBA financing can serve as a foundational capital layer for sustainable growth.
Unfortunately, there are many in the alternative lending space who misrepresent how SBA loans interact with other products. Some claim that high-cost options like MCAs or short-term loans can be easily refinanced or paid off later with a cheaper SBA loan. In reality, these promises often lead business owners into expensive, unqualified products under the false expectation of future relief, only to have the SBA application denied after the damage is done.
Talk to a Cetus Funding professional today to ensure you’re getting accurate guidance and not just funding someone else’s short-term gain at your long-term expense.
