These are just about the same as a “traditional” loan except they are backed by the Small Business Association. The loan still has to go through a bank and they have the final say on whether to issue the loan or not. When applying for such a loan the borrower has to provide a robust business plan, solid collateral, demonstrate secure business assets, and an excellent credit rating. The borrower is also responsible for providing up to 30% of the loan. These loans are not for brand new businesses, but rather, those that have a solid history of successful operations behind them.