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 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.
Precise Mortgage Lending can make sure you have all the necessary elements in line to apply for a Commercial Loan successfully.