Sandy Is Using a Governmental Program to Help Finance Her

question 140

Multiple Choice

Sandy is using a governmental program to help finance her new business.Her company is not eligible for a loan through a normal lending channel and is receiving $120,000 with the SBA guaranteeing 85 percent of the loan.She also had to submit a loan application to the lender.Ellie is participating in the

• A)7(a)Loan Guaranty Program.
• B)Certified Development Company 504 Loan Program.
• C)Small Business Innovative Research Program.
• D)7(M)Microloan Program.

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Definitions:

Wealthy Countries

Nations characterized by a high level of income per capita, advanced infrastructure, and a strong economy.

Social Insurance Program

A government program designed to provide protection against unpredictable financial distress.

Financial Distress

A condition where a company or individual cannot meet or has difficulty meeting financial obligations, leading to potential bankruptcy or restructuring.

Means-Tested Programs

are government assistance programs intended for individuals or families whose incomes and assets fall below specified thresholds.