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SBA Loan. Definition: Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for . SBA financing programs vary depending on a borrower's needs.
What is a 'Commercial Loan' A commercial loan is a debt-based funding arrangement between a business and a financial institution, typically used to fund major capital expenditures and or cover operational costs that the company may otherwise be unable to afford.