In which of the following credit programs does the SBA borrow money to be lent Small Business Investment Companies SBICs) and guarantees payment to investors?
A) 7a) loan
B) 504 loan
C) microloan
D) venture capital loan
E) credit card loan

Question

Quizplus · Accepted Answer

The SBA does not directly lend money to SBICs but rather licenses and regulates them. SBICs are privately owned and managed investment funds that use their own capital plus funds borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses. The SBA guarantees payment to investors in the SBIC program.

In Which of the Following Credit Programs Does the SBA