|
Myth: |
It takes four to six
months to get a SBA Loan processed. |
|
Fact: |
Completed
loan applications from banks average 10 working days. |
| |
|
Myth: |
SBA only provides free
business counseling to business people with SBA loans. |
|
Fact: |
SBA
provides free business counseling to all business people. |
| |
|
Myth: |
SBA provides no
assistance in helping a business get federal contracts from the
government. |
|
Fact: |
SBA has
procurement assistance at Small Business Development Centers across
the country. |
| |
|
Myth: |
A business person can
get cheaper interest rates for business loans from SBA. |
|
Fact: |
SBA does
not provide lower interest rates for small business people. Interest
rates are negotiable with the bank, but are limited to 2.25% above
the prime rate in the Wall Street Journal for loans with maturities
of less than 7 years, and limited 2.75% with maturities of 7 years
or more. |
| |
|
Myth: |
Small loans are not
available through SBA. |
|
Fact: |
SBA
provides an incentive to banks to make loans under $50,000 by
reducing their guarantee fee by half. |
| |
|
Myth: |
SBA has no specialized
programs to assist minority business persons. |
|
Fact: |
SBA's 8(a)
and 7(j) programs provide specialized management and technical
assistance to minorities. |
| |
|
Myth: |
There are few SBA loan
programs. |
|
Fact: |
SBA
finance programs provide a wide spectrum of opportunities including
Guaranteed Loan, Handicapped Assistance, Contract Loan, Veterans
Loan, Exported Revolving LOC, and Small Business ($50,000 and less). |
| |
|
Myth: |
SBA has no programs to
assist veterans. |
|
Fact: |
SBA gives
veterans priority when their loan application arrives in the office
or when they need business counseling to start a small business. |
| |
|
Myth: |
SBA has grants to start
or expand a small business. |
|
Fact: |
SBA has NO
grant program to start or expand a small business. |
| |
|
Myth: |
Contractors receive no
assistance from SBA. |
|
Fact: |
SBA's
Surety Bond Guarantee Program assists contractors with their Bid
Bond, Performance Bond, and Payment Bond. |
