How does the SBA work?
Contrary to popular belief, the primary function of the SBA is not lending money, but acting as an “insurance” agency for banks. The reason behind this is that they can achieve much more using their budget this way than just lending it out themselves. They also lend money directly, but it is a very small portion compared to the amount they guarantee. The following is a list of the loan programs offered by the agency that have the largest impact on you as a small business owner: The lowdoc loan program: This is a personal favorite of mine. Regrettably, I have never actually worked with a lowdoc request. I like this program because of its quickness. Supposedly, a prospective borrower could have an answer in a couple of days. The program is limited to a maximum amount of $150,000. The 7a Loan Guaranty: The 7(a) Loan Guaranty Program is the SBA’s primary lending program. It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. Th
