What Is An SBA Guaranteed Loan And Who Is Eligible?


Manage episode 237104108 series 2518941
By Ryan Smith. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
The SBA, or Small Business Administration, is a Federal Government Guarantee Program that incentivizes banks to make loans to businesses who would otherwise not qualify for various reasons, such as, lack of time in business, experience or personal liquidity, or poor credit history etc. The SBA incentivizes partners banks by guaranteeing between 75% - 90% of the principal loan amount meaning the banks risk in case of default is only between 10% - 25% of the outstanding principal loan balance at the time of default.

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