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Government Loan Guarantees

A guarantee is when a government acts as an insurance provider for the loan. It is very similar to Private Mortgage Insurance (PMI) for homeowners. Guarantees protect banks from a lack of collateral. They are ideal for start-ups and purchasing a business. These programs are becoming very common for their use in creating longer-term fixed financing. Guarantees are growing in popularity. 

Common Guarantee Programs

SBA 7(a) Series
The 7(a) Loan Program is SBA’s primary program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. SBA does not make loans itself, but rather guarantees loans made by participating lending institutions. 

  • Patriot Express for Veterans
  • Export Loans for companies selling products or services outside the United States

USDA Business & Industry Loan
Only available in rural areas (all of Sheboygan County is considered rural) these guarantees can be massive and available for projects exceed $10 million. 


WHEDA Small Business Guarantee
When the SBA 7(a) doesn’t work, this is your next best option. 


WEDC Guarantee
The Wisconsin EDC can offer loan guarantees if the SBA and WHEDA cannot. Contact the SCEDC to learn more.