MYTH: Getting an SBA loan takes too much time!
FACT: Loans approved under the SBA's Preferred Lenders Program, LowDoc Program, SBAExpress or CommunityExpress loan programs require SBA’s approval and funding within 48 hours.
MYTH: You will be buried in government paperwork!
FACT: SBAExpress and SBA CommunityExpress require no additional paperwork. SBA relies on the lenders paperwork only. SBA’s LowDoc program requires you -- the applicant to complete only one (1) page.
MYTH: Three declined letters from different lenders are required!
FACT: This myth holds that your SBA loan will not be approved unless at least three different lenders have turned you down. In fact, the SBA prefers that you have not been declined by any lender.
MYTH: SBA loans are a "last resort" source of funding!
FACT: The SBA feels strongly that they are the first lenders small business owners should approach. The SBA loan programs insist that small businesses not be charged an application fee, or bank management fee. In addition, the SBA loan programs offer cash flow financing with much longer terms than traditional bank financing with no balloons or call dates. SBA places limits on how much interest can be charged by lender to the small business borrower.
Source: U.S. Small Business Administration
