SBA Glossary

Guarantor: A third party who pledges to reimburse a lender if a borrower defaults on a loan.
Guaranty: A pledge by a third party to reimburse a lender if a borrower defaults on a loan.
Interest: The fee charged to a borrower for the right to borrow a lender’s money.
SBA: The Small Business Administration is an independent agency of the executive branch of the United States government. It assists franchises and other small businesses by sponsoring a variety of loan programs.