Question

Tthe funds for a SBA guaranteed loan are provided by the federal government.

a) True
b) False

Answer 1

The statement that funds for an SBA guaranteed loan are provided by the federal government is false. SBA guaranteed loans are financed by private lenders but are backed by the Small Business Administration, which provides a guarantee to reduce lender risk.

Step-by-step explanation:

The funds for an SBA (Small Business Administration) guaranteed loan are not provided directly by the federal government; this statement is false. Instead, the SBA guarantees a portion of the loan, reducing the risk to lenders and making it easier for small businesses to obtain financing. The actual funds are provided by private lenders, such as banks and credit unions. The SBA's guarantee mitigates the lender's risk, which can make them more willing to offer loans to businesses that might not qualify for traditional financing options.

Answer 2

The funds for SBA guaranteed loans are not provided by the federal government; instead, they come from private lenders, with the SBA offering a guarantee to reduce lender risk.

Step-by-step explanation:

The statement 'The funds for an SBA guaranteed loan are provided by the federal government' is false. While the Small Business Administration (SBA) guarantees the loans, the funds are actually provided by private lenders, such as banks and credit institutions. The SBA guarantees a portion of these loans to reduce the risk for lenders, which in turn makes it easier for small businesses to obtain financing.