The SBA’s Guaranteed Loan Program is the means through which small businesses can find a program fit for them and can receive guaranteed loans to fuel their businesses. The four main guaranteed loan programs are:
The SBA acts as a mediator between lenders and the borrowers, and while it does not make the loans itself, the SBA sets the guidelines for the loans made by private-sector lenders. Along with guaranteeing loans to small businesses, the SBA guarantees its lenders that their loans will be repaid.
One noteworthy thing to note is that according to the SBA, small businesses will not receive guaranteed loans if they have access to other financing on reasonable terms.