| 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. |
