Sandy is using a governmental program to help finance her new business.Her company is not eligible for a loan through a normal lending channel and is receiving $120,000 with the SBA guaranteeing 85 percent of the loan.She also had to submit a loan application to the lender.Ellie is participating in the
A)7(a)Loan Guaranty Program.
B)Certified Development Company 504 Loan Program.
C)Small Business Innovative Research Program.
D)7(M)Microloan Program.

Question

Quizplus · Accepted Answer

The information given in the scenario, such as the loan amount, SBA guarantee, and requirement for a loan application to a lender, aligns with the characteristics of the 7(a) Loan Guaranty Program. The Certified Development Company 504 Loan Program is for long-term, fixed-rate financing for major fixed assets such as land and buildings. The Small Business Innovative Research Program is for small businesses engaged in research and development with potential for commercialization. The 7(M) Microloan Program provides small loans up to $50,000 for small businesses and nonprofit childcare centers.

Sandy Is Using a Governmental Program to Help Finance Her