SBA SBA Loan Programs & Lending Requirements 2

Question 1

Which SBA loan program provides lines of credit to help businesses meet short-term working capital needs?

Accepted Answer

SBA CAPLines

Answer

The SBA CAPLines program provides lines of credit to help small businesses meet their short-term and cyclical working capital needs.

Question 2

What is the maximum maturity term for an SBA 7(a) loan used for real estate?

Accepted Answer

25 years

Answer

SBA 7(a) loans used for real estate purchases can have a maximum repayment term of 25 years.

Question 3

Which entity sets the maximum interest rates that lenders can charge on SBA 7(a) loans?

Accepted Answer

SBA

Answer

The SBA sets the maximum interest rates that lenders can charge on SBA 7(a) loans.

Question 4

An SBA Preferred Lender has what key advantage over standard SBA lenders?

Accepted Answer

Authority to make final credit decisions without SBA review

Answer

SBA Preferred Lenders have delegated authority to make final credit decisions without prior SBA review, speeding up the loan process.

Question 5

For SBA loan eligibility, what size standard is most commonly used to determine if a business qualifies as 'small'?

Accepted Answer

Number of employees or annual revenue by industry

Answer

The SBA uses industry-specific size standards based on number of employees or annual receipts to determine if a business qualifies as small.

(SBA) Small Business Administration Certified Business Practice Test