Small business loans facilitate the creation, expansion or operation of a business. This type of lending instrument can range greatly in type, terms and even the sources for obtaining financing. In most cases, small business loans are granted by banks, credit unions and private lenders that receive banking from the U.S. government through Small Business Administration (SBA) programs. The cost of financing will depend on the principal amount, the interest rate offered and the term in length of months or years involved with the loan.

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