How does an SBA loan work? SBA loans are guaranteed by the SBA or Small Business Administration. With an SBA, U.S. Bank helps high-growth companies and entrepreneurs reach their goals.Independence Bank specializes in small business loans through the U.S. Small Business Administration flagship 7(a) guaranteed lending program. Independence Bank is consistently one of the top SBA 7(a) lenders in Rhode Island.SBA loans can help you start, buy or expand a business. Here’s everything you need to know about the Small Business Administration-guaranteed loans. An SBA loan is a small-business loan offered by banks and online lenders, and partly guaranteed by the government.SBA loans can give your small business a boost, especially if you’re struggling because of COVID-19. SBA loans offer enviable rates and terms for small businesses that might not usually qualify for a traditional bank loan. The benefits don’t end there.