Question

7. Which of the following is false?

A) The Small Business Administration (SBA) is a government agency designed to help small business owners.

B) SBA does not directly lend money, instead it helps partner business owners with other lenders in order to have more secure funding.

C) SBA loans are not guaranteed.

D) Some microfinance institutions have turned into predatory loan sharks.

E) All the above are true

Answer 1

Small business administration loans are guaranteed by federal agency which allows the lenders to offer them with flexible terms and conditions as it provides with a sense of security to lenders.

So Statement (C) SBA loans are not guaranteed is a FALSE statement.

SBA is government agency which help partner business owners in getting loans as some microfinance organization have turned into predatory loan sharks.

So statement (A) ,(B), and (D) are TRUE.

So the correct answer would be option (C) as it is a false statement.