In which of the following credit programs does the SBA approve a loan and guarantee up to 85% of loan value?
A)7(a)loan
B)CDC/504 loan
C)microloan
D)venture capital loan

Question

Quizplus · Accepted Answer

The 7(a) loan program is the SBA's primary program for providing financial assistance to small businesses. Under this program, the SBA doesn't lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions. The SBA guarantees these loans up to a certain percentage, which can be up to 85% for loans of $150,000 or less and 75% for loans more than $150,000. This guarantee reduces the risk for lenders and makes it easier for small businesses to get the financing they need.

In Which of the Following Credit Programs Does the SBA