Financial Assistance
SBA administers three separate, but equally important loan programs. The Agency sets the
guidelines for the loans while our 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 our lending partners. The Agency's Loan guaranty
requirements and practices can change as 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.
The loan guaranty which SBA provides transfers the potential
risk of borrower non-payment, up to the amount of the guaranty, from the lender to SBA. Therefore,
when a business applies for an SBA Loan, they are actually applying for a commercial loan,
structured according to SBA requirements, but provided by our cooperating lending partner, which
receives an SBA guaranty.
