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Tina Mark Posted on Feb 15, 2016
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How The SBA Loan Guaranteed Does Work?

I want to know how does the SBA guarantee loan program work?

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Carol Terry

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  • The Master 332 Answers
  • Posted on Feb 15, 2016
Carol Terry
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Under the guarantee theory, lenders make and manage the financing. The business applies to a lender for financing. The lender comes to a decision if they may make the loan internally or if the loan application has some flaws which, in their opinion, will require an SBA guarantee if the loan is to be made. Under this program, the borrower remains obligated for the entire amount due.

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Related Questions:

0helpful
1answer

Can I Get An SBA Loan To Refinance Existing Debt?

Yes, in case the debt is a business debt (i.e. not personal) and the refinance should result in a minimum of 20% improvement in cash flow.
0helpful
2answers

What is an SBA loan?

Here is a wikipedia entry that has more in-depth information
https://en.wikipedia.org/wiki/SBA_504_Loan
0helpful
1answer

What Costs Are Involved With SBA Loan?

The U.S. Small Business Administration costs a one-time guarantee fee that ranges from 2-3.75% of the guaranteed SBA loan amount. These costs can be incorporated into your loan proceeds.
0helpful
1answer

Can I Get A Second SBA Loan?

Of course, many borrowers get a second SBA loan as their business grows and needs additional working capital. In case you acquire approval of multiple SBA loan within 90 days of each other, the loans can be treated as if they were one loan for purposes of figuring out the amount of the SBA guarantee fees, if any.
0helpful
1answer

What Is An SBA Loan And How Do I Get It?

An SBA loan is a loan that has been guaranteed by the U.S. Small Business Administration. The guarantee assures the lender that it will be repaid a part of the money it loans in case the borrower fails to repay it. The SBA will guarantee up to 85% on loans of $150,000 or much less and as much as 75% on loans over $150,000. With few exceptions, the maximum SBA guarantee is $1 million.
0helpful
2answers

Do I Have To Set Up Collateral To Acquire An SBA Loan? What's Qualified?

There are a number of SBA loans with different criteria along with what SBA requires. There are numerous sites to offer a wealth of information.
Here are just a few of the many to start you off
SBA Loans The Small Business Administration SBA gov
Same site but another section with different info.
SBA Loan Programs The Small Business Administration SBA gov

SBA Loans for Your Startup

5 Tips for Using Collateral to Secure Small Business Loan
0helpful
2answers

How Do I Get A Loan From Small Business Administration?

The Small Business Administration programs are made to encourage commercial loan companies to create financial loans to business proprietors and entrepreneurs. The Small Business Administration doesn't make direct loans, however they have many loan guarantee programs that may be very advantageous to companies.
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