Private businesses that are authorized to make SBA insured loans to start-ups and small businesses are called _____.

Question

Quizplus · Accepted Answer

Small business investment companies (SBICs) are private businesses authorized by the Small Business Administration (SBA) to make loans to start-ups and small businesses. They are licensed and regulated by the SBA and can also provide equity financing. Community development organizations (A) may provide some support or funding to small businesses, but they are not specifically authorized to make SBA loans. Accelerators (B) are programs that provide mentoring, resources, and sometimes funding to help new businesses grow quickly; however, they do not typically provide loans. LLCs (D) are a type of business entity defined by state law and have no specific role in making SBA loans.

Private Businesses That Are Authorized to Make SBA Insured Loans