Is there a agencies in the Federal government that loan people money to buy a business?

Answer 1

No. That's been tried in the 1950s and turned out to be a huge disaster. There is, however, an agency (called Small Business Administration) that will guarantee up to 70% of a loan made to you by a bank. In order to qualify for the SBA guarantee, though, you need to show your inability to obtain financing elsewhere (such as having your loan application turned down) and your ability to run the business. The final decision will still lay with the bank, but they will be more inclined to fund you knowing that they have a partial government guarantee.

Answer 2

Yes, it is called Small Business loans and you can get information over the internet. Just type in Federal Government Small Business Loans.

Answer 3

Yes. You can go to the Small Business Administration website for low cost government loan guarantees for small business entrepreneurs http://www.sba.gov/financing

I suggest you read the following documents

CREDIT FACTORS A POTENTIAL BORROWER SHOULD KNOW http://www.sba.gov/financing/preparation/qualify.html
What Will I Need to be Considered for SBA Loan Assistance? http://www.sba.gov/financing/preparation/requirements.html

I suggest you contact your nearest Small Business Development Center (search for "SBDC name of your state") to help you in locating financing institutions and banks that provides SBA loan guarantees

Answer 4

The SBA does not loan money. You have to go to a lender. If your credit is not good enough, the SBA may guarantee up to 80% of the loan.