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Does SBA Guaranteed Lending Impact Economic Performance in Clevelandfed

Does SBA Guaranteed Lending Impact Economic Performance in Clevelandfed

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for instance if I'm a business owner and I borrow a million dollars and I have a 75% guarantee the money will come from XYZ financial institution but the SBA will place a 75% guarantee on those funds meaning if something goes Ary and I default on my loan and and have to shut my doors the SBA will guarantee that lending Source 75% of the balance of that loan which allows Banks to feel a little bit more confident and comfortable lending with a little bit more risk took me probably 15 years in banking and doing SBA Loans at multiple places to really understand that now I'm at an organization where my credit policy really closely aligns with the SBA so now I can hyperfocus a little bit more on what the SBA policy is because I'm not deflecting from that as much as I used to in my previous worlds

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