Grants, loan guarantees, and the government
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1. Discuss whether or not the government should provide grants for entrepreneurs starting new businesses.
2. Discuss whether or not the government should guarantee loans for small businesses that are missing the necessary track records, assets, or ingredients to obtain a commercial bank loan.
3. What do we do, as a nation of taxpayers, receive from such grants and loan guarantees?
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Solution Summary
A discussion on the government's role in grants and loan guarantees.
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www.sba.org
Please check this site to fill in any information that might not be included in the answers. The SBA works with businesses and also provides disaster loans for individuals.
The government providing grants is a good idea. The ability to meet the demands of for profit commercial banks that depend on elements to assure repayment is often too steep and too involved for a small business or entrepreneur. While every company should have some stable assurances, in some cases, new ideas and new ventures can be risky and safe. Commercial interests are going to evaluate ...
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