SBA Loans - Facts and Myths

SBA provides HIGH LEVERAGE (up to 90%) loans for small businesses with OR without real estate. Most commercial banks will limit loan amounts to 70±% of value/cost for real estate, and even less than that for leaseholds, inventory, equipment, etc. Many capital needs that commercial banks will determine ineligible for loan proceeds are available for SBA loans. 

SBA will approve higher-risk loans that most commercial banks will decline and interest rates are competitive, but NOT below market rate.
If interest rate is your hot button, SBA products are not for you. SBA loan programs do include some nominal extra costs, but all these additional costs are included in the loan proceeds.

All SBA loans require a personal guarantee from the borrower. Most, if not all, commercial banks will also require that same guarantee.

 

“SBA loans are too complicated and take too long”  Yes, this of often the case. But that is due to the borrower working with the wrong bank or broker. A lot of people say they “do” SBA loans, but without the experience and focus of an advisor like SBANav, many borrowers may be disappointed. And frankly, there is no reason for that. SBANav has solved that problem! 

“SBA loans offer low interest rates.”  Not true. SBA loan program interest rates are relatively competitive with commercial banks, but the
SBA loan programs offer capital to businesses that might not be approved by a commercial bank, and SBA programs offer the highest possible leverage in loan proceeds, as well as providing capital for uses many commercial banks decline.