Small Business Administration

The SBA is part of the executive branch of the U.S. government. The mission of the SBA is to help small businesses in the United States in four distinct ways:
• Small Business Advocacy
• Small Business Management
• Small Business Acquisition
• Small Business Financing Assistance
Since the vast majority of small business growth in the United States is through franchises, the SBA is a useful resource for potential franchisees, especially concerning franchise financing.
Many Americans are familiar with the SBA only because they have heard of SBA loans; the SBA has three main loan programs. These loan programs, however, are not actual loans. Rather, they are guaranty programs whereby the SBA provides incentive for lending institutions to provide financing for franchise (and other small) businesses. An SBA guaranty eliminates some of the lending institution's risk, enabling them to offer financing to franchisees and small business owners who would otherwise have not qualified for a business loan.