I'm purchasing a business right now. If not for the SBA guaranteed loan program I would not be able to qualify. The SBA is guaranteeing 75% of the loan amount to the bank issuing my loan, in case I default. This allows the bank to loosen the guidelines they would normally impose, and makes it possible for me to actually qualify. Without the SBA guarantee to the bank, I wouldn't be able to do this.
It's a similar situation with housing. If FHA didn't offer mortgage insurance and there weren't private mortgage insurers for conventional home loans, very few people would ever have the 20% downpayment they would need to otherwise qualify for the house.
In my case, I'm able to buy this business with 2.5% of the total loan amount out of my pocket... which is amazing.
I'm purchasing a business right now. If not for the SBA guaranteed loan program I would not be able to qualify. The SBA is guaranteeing 75% of the loan amount to the bank issuing my loan, in case I default. This allows the bank to loosen the guidelines they would normally impose, and makes it possible for me to actually qualify. Without the SBA guarantee to the bank, I wouldn't be able to do this.
It's a similar situation with housing. If FHA didn't offer mortgage insurance and there weren't private mortgage insurers for conventional home loans, very few people would ever have the 20% downpayment they would need to otherwise qualify for the house.
In my case, I'm able to buy this business with 2.5% of the total loan amount out of my pocket... which is amazing.