Federal efforts to aid minority businesses began in the 1960

Federal efforts to aid minority businesses began in the 1960’s when the Small Business Administration (SBA) began making federally guaranteed loans and government-sponsored management and technical assistance available to minority business enterprises. While this program enabled many minority entrepreneurs to form new businesses, the results were disappointing, since managerial inexperience, unfavorable locations, and capital shortages led to high failure rates. Even 15 years after the program was implemented, minority business receipts were not quite two percent of the national economy’s total receipts.

Which of the following statements about the SBA program can be inferred from the passage?

a) The maximum term for loans made to recipient businesses was 15 years.

b) Business loans were considered to be more useful to recipient businesses than was management and technical assistance.

c) The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.

d) Recipient businesses were encouraged to relocate to areas more favorable for business development.

e) The capitalization needs of recipient businesses were assessed and then provided for adequately.

This question is extracted from this RC question: LINK