Don’t take government guarantees for granted – How to avoid jeopardizing your SBA loan guarantees

Description

Abstract: Banks that participate in U.S. Small Business Administration (SBA) lending programs must comply with all SBA requirements and standards to ensure that the government will honor its loan guarantees. This article explains that these loans allow banks that follow prudent lending practices to expand customer base, reduce risk, boost lending capacity (the guaranteed portion of these loans doesn’t count toward a bank’s legal lending limit), and improve liquidity (the guaranteed portion can be sold on the secondary market).