Small Business Association A) Sba's Term Paper

In case the lender makes approval of the loan, depending on a SBA guarantee, an application copy as well as a credit analysis is sent by the lender to the SBA Office which is nearby. After the approval of the SBA, the institution of lending readies the loan and makes funds disbursal. The borrower makes loan payments on a monthly basis directly towards the lender. Similar to other loans, the borrower is responsible for repayment of the complete loan amount. "No balloon payments, prepayment penalties, application fees or points are permitted with the 7(a) loans. However repayment plans might be tailored to each business." (SBA Assistance: Financial Program and Other Assistance)

Christina: Sir, one last question before we wrap up. Could share some of the achievements of SBA Loan Program?

Steve Preston: I feel privileged to share with you that since 1953, about 20 million of the small businesses have accessible to direct or indirect assistance with regard to any of those of the SBA programs, starting from the period the agency has evolved to be the most feasible type of instrument of the government relating to the purpose of economic development. Hence the prevailing portfolio pertaining to business loan of the SBA is about 219000 of loans having a value of over $45 billion which qualifies it to be the single largest financial backer with regard to the U.S. businesses present in the country.For more details, I would request you to please log on to our website which is http://www.sba.govand check the various links for more details. (Overview and History: SBA Program Office)

Christina: Thank you Sir, for sharing some valuable information for the benefit of entrepreneurs looking forward to start new ventures and avail loans.

Steve Preston: It was so nice to talk to you. Thank you.

References

Anglund, Sandra M. Small Business Policy and the American Creed. Westport, Conn:

Praeger; 2000.

Bannock, Graham. The Economics and Management of Small Business: An International

Perspective. Routledge. 2005.

Overview and History: SBA Program Office. 2007. http://www.sba.gov/aboutsba/history/index.html

SBA Assistance: Financial Program and Other Assistance. 2007 http://www.sba.gov/smallbusinessplanner/plan/getready/serv_sguide_sbaass.html

SBA Program Office: SBA's Role. 2007. http://www.sba.gov/services/financialassistance/basics/sbarole/index.html

SBA Program Office: Snap Shot. 2007. http://www.sba.gov/services/financialassistance/sbaloantopics/snapshot/index.html.....