Sandy is using a government program to help finance her new business. Her company is not eligible for a loan through a normal lending channel and is receiving $120,000 with the SBA guaranteeing 85 percent of the loan. She also had to submit a loan application to the lender. Sandy is participating in the
A) 7(a) Loan Guaranty Program.
B) Certified Development Company 504 Loan Program.
C) Small Business Innovative Research Program.
D) 7(m) Microloan Program.

Question

Quizplus · Accepted Answer

The description of the loan matches the terms of the 7(a) Loan Guaranty Program, which provides loans to small businesses that are unable to obtain financing through traditional lending channels. The program guarantees a portion of the loan, which allows lenders to have more confidence in approving loans to small businesses. The other options listed are not relevant to the scenario described.

Sandy Is Using a Government Program to Help Finance Her