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Johny Fernandez: What is an SBA
loan?

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Sean Murray: What is an SBA
loan? Okay, so an SBA loan is

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not a loan from the government.
That's what a lot of people

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think an SBA loan is a loan made
from a traditional capital

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source that is approved by the
Small Business Administration.

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And all the SBA is doing it that
they're guaranteeing the

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performance of that loan. So the
bank or the lender who is making

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the SBA loan is essentially
protected in the event of

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default. And the SBA does this
because it encourages the

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lenders and banks to make loans
that they probably otherwise

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normally wouldn't make by saying
we'll guarantee the loan in case

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it defaults. Now, there are
certain parameters they have to

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adhere to, to make an SBA loan,
but it is a loan from a lender

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or a bank that is just
guaranteed by the SBA.