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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.
1 Unlike conventional loans, the SBA 7(a) program could be used to fund goodwill in the business.  SBA 7(a) loans allow the acquiring partner to put down just 25 percent of the deal value and finance the remaining 75 percent.