Final answer:
The Small Business Administration (SBA) is the government agency that helps new businesses get started with private bank loans. Through loan guarantees and support programs, the SBA reduces the risk for private banks and increases access to financing for small businesses.
Step-by-step explanation:
The government agency that helps new businesses get started with private bank loans is the Small Business Administration (SBA). The SBA is a government agency that provides support, resources, and loan guarantees to small businesses to help them obtain financing from private banks. Through programs like the 7(a) Loan Program, the SBA enables small businesses to secure loans from private lenders by reducing the risk for the lenders.
For example, a new restaurant owner looking to secure a bank loan can approach a private bank for financing. However, the bank may be hesitant to approve the loan because of the higher risk associated with new businesses. In such cases, the SBA can guarantee a portion of the loan, reducing the bank's risk and increasing the likelihood of loan approval for the restaurant owner.
This government assistance helps stimulate economic growth by encouraging entrepreneurship and facilitating access to capital for small businesses.