The most popular loan program provided by the Small Business Administration is the basic 7(a) Loan Guaranty program
What is the 7(a) Loan Guaranty program? In your answer please address the following points: who is eligible for the loans, how the loans are administered, typical requirements of the applicant, who is responsible for the repayment of the loan, and what happens if there is a loan default.
What will be an ideal response?
Answer: The 7(a) Loan Guaranty program administers business loans to individuals or firms that might not be eligible for a loan through the normal lending agencies. The loans are delivered through commercial lenders and guaranteed by the SBA. Common requirements of applicants include:
• evidence of good character
• evidence of management capability
• collateral and owner's contribution
• a viable business plan
• a personal financial statement
• business financial statements, including projected cash flows
The borrower is responsible for repayment of the loan, but the SBA does guarantee a certain percentage of the loan in case of default.
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A. fauna B. nurture C. foster D. nature
The liability concept that restricts liability to each defendant’s share of the damages based upon the judge or jury’s assessment of their share of the damages is called:
a. proportionate liability. b. compensatory liability. c. joint and several liability. d. disproportionate liability.
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a. investments; high; low b. assets; low; high c. investments; low; high d. assets; high; low