Why SBA?

The SBA loan guarantee programs are among the most widely used tools in business financing today. Once perceived as a federal bureaucracy catering only to the economically disadvantaged, today's SBA programs actually enable many successful small and medium sized businesses to grow by borrowing on more favorable terms than they could obtain on their own.

Facts & Myths About SBA Loans

Applicants frequently have misconceptions about using government programs to help their businesses. The true facts about SBA guaranteed lending are set forth below.

Myths

1. SBA guarantees loans that are the highest risk.
2. The government wants to run the business.
3. Loans are primarily for minorities and economically disadvantaged groups.
4. SBA is the lender of last resort.

Facts

1. Loan guarantees are based on the same criteria used by the lenders.
2. The government's credit, not government's business skills, is what the lenders want.
3. Loan guarantees are issued without regard to race, creed, origin or sex.
4. Guarantees go to businesses that need some help, not to ones who do not.

"SBA's mission is to help small businesses grow and prosper"