There are many myths regarding the SBA. Below are seven. Feel free to contribute others.
Myth:
It takes four to six months to get a SBA Loan processed.
Fact: Completed loan applications from banks average 10 working days.
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’ applications priority and/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.
