The SBA guarantees loans. They do not give loans, but they guarantee loans through a bank or through certain organizations. This is not cutting stone; it depends on the type of business. They will guarantee 70% to 80% of the amount of loan that someone is giving. If you get an SBA loan through a bank, the government will guarantee the bank that they will not take a loss on 70% for example. They take the risk on the other 30%. Unless it's a very small loan, you have got to have equity to put up as well. And that figure varies depending upon the type of business and the credit rating of the person. Normally it's somewhere between 25% and 30% of the total amount that is needed to go into the business.
