Descriptions of the business loan programs.

CFR · 2024-01-01 · US · Title 13

(a) (i) A direct loan by SBA; (ii) An immediate participation loan by a Lender and SBA; or (iii) A guaranteed loan (deferred participation) by which SBA guarantees a portion of a loan made by a Lender. (2) A guaranteed loan is initiated by a Lender agreeing to make an SBA guaranteed loan to a small business and applying to SBA for SBA's guarantee under a blanket guarantee agreement (participation agreement) between SBA and the Lender. If SBA agrees to guarantee (authorizes) a portion of the loan, the Lender funds and services the loan. If the small business defaults on the loan, SBA's guarantee requires SBA to purchase its portion of the outstanding balance, upon demand by the Lender and subject to specific conditions. Regulations specific to 7(a) loans are found in subpart B of this part. (b) (c)

official document · source cfr-2024 · id 13:§ 120.2