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Small Business Investing

Managing a Small Business

What are “Small Business Administration loans”?

The SBA backs loans to small businesses through commercial lenders, as long as SBA guidelines are followed. Although the SBA does not loan money directly to businesses, it partially guarantees the loans, acting as a co-signer, since many small businesses often have not established a long credit history or do not have access to collateral to guarantee the loan. This makes the loan less risky for lenders, and allows for economic expansion and employment.



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