SBA provides financial assistance through its participating lenders in the form of loan guaranties, not direct loans. SBA does not provide grants for business start-up or expansion. Certified lenders account for nearly a third of all SBA business loan guaranties. Preferred lenders receive full delegation of lending authority.
Approval focuses on character, credit and experience.
A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community or region. CDCs work with the SBA and private- sector lenders to provide financing to small businesses. There are about 290 CDCs nationwide. Each CDC covers a specific area. SBICs, licensed by the Small Business Administration, are privately organized and privately managed investment firms.