What are the different SBA loans programs?
SBA administers three separate, but equally important loan programs. SBA sets the guidelines for the loans while SBAs partners (Lenders, Community Development Organizations, and Micro-lending Institutions) make the loans to small businesses. SBA backs those loans with a guaranty that will eliminate some of the risk to the lending partners. The Agency’s Loan guaranty requirements and practices can change however as the Government alters its fiscal policy and priorities to meet current economic conditions. Therefore, past policy cannot always be relied upon when seeking assistance in today’s market. Federal appropriations are available to the SBA to provide guarantees on loans structured under the Agency’s requirements. With a loan guaranty, the actual funds are provided by independent lenders who receive the full faith and credit backing of the Federal Government on a portion of the loan they make to small business. The loan guaranty which SBA provides transfers the risk of borrower non
