Common SBA Myths and Facts
The Small Business Administration (SBA) has been working with financial institutions to provide new business owners and developers with business loans. Many individuals have successfully obtained a SBA loan, however others have not even tried because of inaccurate myths about the SBA. The following is ten myths about the SBA and the truths surrounding them.
Myth: The SBA is designed only to help certain individuals.
Fact: The SBA offers loan and counseling programs to individuals of all ages. There are even special programs that are designed to assist veterans and minorities.
Myth: Assistance from the SBA must be paid for.
Fact: Free information can be obtained from the SBA by visiting their website at sba.gov. Additional assistance can be obtained through small business counseling centers. These centers are located all around the United States.
Myth: There are only a limited number of SBA programs.
Fact: The SBA offers loan programs that cover a wide variety of different physical and businesses opportunities. For example, SBA offers loan programs for small business owners, veterans, handicapped individuals, and more.
Myth: Approval for SBA loans takes forever.
Truth: A SBA loan is processed in a way that is similar to traditional bank loans. Approval can be determined in as little as two days and up to two weeks at the most.
Myth: A large amount of paperwork is required to file for a SBA loan.
Fact: SBA loans do not require any additional paperwork. The only paperwork that must be filled out is traditional loan applications provided by lenders.
Myth: Cheaper interest rates are available with SBA loans.
Fact: SBA loans do not automatically offer low interest rates. Interest rates can be renegotiated with a financial institution, but that does not guarantee cheap interest rates.
Myth: Small business loans are not obtainable through the SBA.
Fact: The SBA offers multiple incentives to banks that make small loans; therefore, just about any size loan is obtainable.
Myth: In addition to loans, the SBA offers grants to qualifying businesses.
Fact: There are no grants available for business owners.
Myth: The SBA does not offer assistance for small business owners looking into federal funding.
Fact: This assistance can be obtained at any SBA Development Center in the United States.
Myth: Contractors are not able to receive SBA assistance.
Fact: There is a SBA program known as the Surety Bond Guarantee. This program offers a large amount of assistance to contractors.
Believing in the above mentioned SBA myths can be costly to a new business owner. Taking these myths into consideration could prevent an individual from obtaining valuable business information and business financing.
Click here if you are looking for commercial loan, hotel financing, motel financing, financing for business purchase, franchise opportunity, or if you need a business loan for equipment or working capital.
Click here to search our Business For Sale Listings.
Click here to return to our Buyer's Guide.