When the Small Business Administration (SBA) assists a small business in applying for a major loan, it acts as the lender's _____.
A) credit union
B) savings and loan association
C) guarantor
D) bank

Question

Quizplus · Accepted Answer

The SBA acts as a guarantor when they assist a small business in applying for a major loan. This means that they provide a guarantee to the lender that they will repay a portion of the loan if the borrower is unable to do so. This reduces the risk for the lender and makes it easier for small businesses to secure financing. It is not acting as a credit union, savings and loan association, or bank in this situation.

When the Small Business Administration (SBA) Assists a Small Business