| Myth: |
It takes four to six months to get a SBA Loan processed.
|
| Fact: |
Completed loan applications from banks average 10 working
days. |
|
| 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 nder $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. |
