5. We studied the resources that the Small Business Administration can offer ent

Question

5. We studied the resources that the Small Business Administration can offer entrepreneurs a. If an entrepreneur is seeking a microloan, what is the maximum amount of b. Why do private banks consider 7(a) loans to be relatively safe loans? 3 pts. i. They do not, but the SBA forces them to make the loans anyway. The SBA guarantees at least 75% of the loan, meaning that if the borrower is unable to repay the full value of the loan, the SBA will pay at least 75% of the loan's value to the bank. ii, They only make loans to entrepreneurs who have started other successful businesses before. True or False. The SBA provides for S10 million of grant funding a year for new businesses. 3 pts. c.

Explanation / Answer

a- The maximum borrowing amount for a SBA-backedmicroloan is $50,000.

b- The SBA guarantees at least 75% of the loan, meaning that if the borrower is unable to repay the full value of the loan, the SBA will pay at least 75% of the loan's value to the bank

c- False

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