What is an SBA loan and what businesses are eligible for one? What can an SBA loan be used for? What are the requirements for receiving an SBA loan? Do you need a good personal credit history to get an SBA loan? And where can a small business owner apply for an SBA loan?

In this episode of Financial Cents, John Lewis, senior vice president and regional commercial manager at National Bank of Arizona, joins host Brent Cannon, executive vice president and director of community banking at National Bank of Arizona, to discuss 5 things most people probably don’t know about SBA loans and why they should know them.

“The Small Business Administration, or SBA, partners with financial institutions like National Bank of Arizona to be able to provide loans to small businesses. For the bank, these loans are guaranteed by the federal government up 85%,” says John. “This guarantee then allows banks to be able to provide more flexible terms for small business owners than they may ordinarily be able to get.”

“That’s what makes these loans such a valuable asset for small businesses,” adds Brent.

“SBA loans can be used for a wide variety of things,” says John, “from short-term working capital to long-term working capital, in addition to acquiring assets like equipment or commercial real estate.”

As someone who has been in commercial banking for over 19 years and in nearly every corner of Arizona, John has seen the successes that can come from an SBA loan. “I’ve seen a lot of great things happen over the years, from starting up ice cream shops or pizza joints, to a new flight school that needed financing on a number of airplanes," says John.

Financial Cents is hosted by Brent Cannon and features insightful interviews and discussions with bankers at National Bank of Arizona. Based on decades of banking experience, Financial Cents provides the insights you can only get from a friend in the business.