I've heard that the SBA only guarantees loans that are high risk or otherwise unbankable. Is this True?
The SBA guarantees loans using essentially the same credit criteria banks use and on terms that might not be available through a conventional lender.
Do SBA loans have large prepayment penalties?
There are never any prepayment penalties on SBA loans.
Does the SBA Lend primarily to minorities and other economically disadvantaged groups?
No. SBA loans are available to all small businesses that qualify. However, the SBA does have special programs for women, minorities and the economically disadvantaged.
Is the SBA loan process paper-intensive?
An SBA loan has no greater paperwork requirement from a small business than does a business loan from a commercial bank.
I've heard that it takes 6 months to get an SBA loan approved. Is this true?
No. SBA loans have been approved in as little as 5 business days of submission (on complete packages). Loans can be funded within 30-45 days.
Is it true that once you get an SBA loan, the Government runs your business?
Absolutely not. The SBA does not intrude on the management of small business borrowers. In fact, SBA loans are made on the ability of small businesses to manage themselves and repay their SBA loans.
