What does the SBA NOT do in regard to business financing?

The Small Business Administration (SBA) does not make loans directly to small businesses. Instead, it plays a crucial role in facilitating loans through banks and other lending institutions by providing guarantees on those loans. This means that if a business defaults, the SBA will cover a portion of the loan, thus reducing the risk for lenders and making it easier for small businesses to access financing.

In addition to acting as a guarantor, the SBA offers training and support for business management, which helps business owners develop the skills necessary to run their operations effectively. They also provide advice on loan applications, guiding small business owners on how to best present their case to potential lenders.

These services make the SBA an invaluable resource for small businesses, but it does not directly provide funds, which distinguishes it from traditional lending institutions.