The Small Business Administration (SBA) provides loan guarantees, and makes indirect loans to help small businesses. Although this is true that the SBA borrowings are there for the help of small businesses, it is also true that you have to have a good credit history to get approval from SBA If there were some problems with the credit report in the past, then you have to make clear that all these problems have already been sorted out.
However, the debt is still valid and therefore, the bank may choose to transfer the account to a collecting agency to recover the debt. Hence, the lending requirements for SBA loans can depend largely on the rules, regulations and policies of specific banks.
Many people are unwilling to work with a business coach, as they’re unaware of the value that a professional business coach can bring in the organization. On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change).
Translation: banks are comfortable with the new SBA (as opposed to the more insular and contentious regime under the Bush administrations that spent more time fighting and failing to communicate with lenders than trying to treat them as partners) and so more willing to make loans even though the default rates go higher.
The general politics of mandated corporate governance is to wait and see how new legislation will affect the small businesses driving the US economy. Small businesses looking for working capital can approach these lenders, and they usually get approval if they have a formidable business plan.