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FAQ #26084

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What is a guaranteed business loan?

Related resource areas: Entrepreneurs & Their Communities


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Federal agencies like the Small Business Administration (SBA) and the USDA Farm Service Agency (FSA) offer guaranteed loans to help banks make business and farm loans that otherwise might be considered too risky. In a guaranteed loan, the federal agency is agreeing to buy the guaranteed portion of the loan in the event that the borrower defaults on the loan.

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