Question

• Describe in detail what the SBA role is in the loan process. What do they do to help people get loans? What do they do for the lenders to reduce their risk?

Answer 1

• SBA loan is preparing for the day when the borrower signs loan document.
• The lender funds the loan for the borrower.
• If you are seeking for a loan for small business,SBA lends money to its lenders.
• SBA guarantees that these loans will be repaid.
• SBA develops a range of loan programP to meet financing needs such as debt, long and short term working capital,real estate etc.

SBA loan are best way to finance your small business.

• They are guaranteed by the federal agency which allows the lender to offer with flexible terms and low interest rates.
• SBA loan is a small business loan that is guaranteed by the government.
• Eliminates risk for the financial institution who is issuing the loan.
• SBA lends money to the small business with better terms and guarantees the loans that these lenders extend their small business.
• If you are hoping to apply for an SBA loan.
• You will need to prepare a documentation and even more patience..
• SBA loan range in size anywhere from$500 to$5.5 million.
• Repayment terms for SBA loan range from 5to25years
• 10 years is a standard SBA loan repayment term length.

SBA partially guarantees small business loans .

It reduces risk for lenders and borrowers alike.

Money borrowed from SBA loans can be used virtually for any business

Purchasing long term fixed assets

To reduce risk, guarantee programs adhere to specific lending terms "and other criteria outlined by SBA

SBA guarantee 50% to 85% of an eligible loan for eg: sharing the potential risk with the lender

Enables small business borrowers to access capital from traditional lending

They do not act as a direct lender

Lenders decide whether or not to approve a loan application

Application is made to SBA for the guarantee