SBA Financial Management & Funding Resources 2

Question 1

Which SBA loan program is specifically designed to provide microloans up to $50,000 to small businesses and certain non-profit childcare centers?

Accepted Answer

SBA Microloan Program

Answer

The SBA Microloan Program provides loans up to $50,000 through nonprofit intermediary lenders to help small businesses start up and expand.

Question 2

A small business owner wants to purchase a commercial building to house their operations. Which SBA loan program is MOST appropriate for this long-term fixed asset acquisition?

Accepted Answer

SBA 504 Loan Program

Answer

The SBA 504 Loan Program is designed for major fixed assets like real estate and heavy equipment, offering long-term, fixed-rate financing.

Question 3

What is the maximum loan amount available under the standard SBA 7(a) loan program?

Accepted Answer

$5 million

Answer

The maximum loan amount for the SBA 7(a) program is $5 million, making it the primary program for a wide range of business financing needs.

Question 4

In SBA financial analysis, what does the Debt Service Coverage Ratio (DSCR) measure?

Accepted Answer

The ability of business cash flow to cover loan payments

Answer

DSCR measures whether a business generates enough net operating income to cover its debt obligations, with most lenders requiring a ratio of 1.25 or higher.

Question 5

Which financial statement shows a business's revenues, expenses, and profit or loss over a specific period of time?

Accepted Answer

Income Statement

Answer

The Income Statement (also called Profit & Loss Statement) summarizes revenues and expenses over a reporting period to show net profit or loss.

(SBA) Small Business Administration Certified Business Practice Test

(SBA) Small Business Administration Certified Business Practice Test

SBA Financial Management & Funding Resources 2