A. First, there is no direct loan from the Small Business Administration (SBA) despite the late night TV spot screaming at you that "the government wants to give you $50,000 to start your new business". This is simply not true. The "SBA loan" is in the form of loan guarantees. You must deal directly with your bank. They, in turn, will work with the SBA if they need additional security. You can think of the SBA as a level above your bank that is providing incentives to your bank to make it easier for you to get financing. The bank evaluates your loan application and in administers the loan. The bank's agreement is necessary before the SBA will get involved.