Why is it that often the most time-tested, dependable financing solutions can get lost in the fray? As someone who lives and breathes Small Business Administration loans, I think it’s because they’ve been reliably serving us for so long that we sometimes take them for granted.
But there’s a reason why SBA loans have been helping businesses grow and stay competitive for more than 60 years: They work. What doesn’t work: The common misconceptions surrounding SBA loans.
Here are the top 3 misconceptions that Seedcopa encounters as we work with lenders to “concierge” small businesses through the loan process.
- “Securing an SBA loan is complicated.” Not if you have a sound plan for the loan process as well as a partner lender to support it. That’s essential to any loan you pursue, but with an SBA loan, you arrive on the other side with some of the lowest rates, longest terms and lowest payments on the market.
- “My credit score is too low.” Very few people have perfect credit, and the SBA knows that. Of course, there are scores that are too low, but if you have a few credit issues or they are in the past, talk to us. We have worked with borrowers who have credit issues that arose through medical collections or a divorce. Once we understand what happened, we’ll be able to discuss how to move forward. Seedcopa assists with this as part of a successful loan application, along with outlining an effective business plan, capacity to repay and skillful management.
- “It sounds too good to be true.” SBA loans are intended to fuel small business growth by guaranteeing loans for borrowers who otherwise might not be able to meet collateral or down payment requirements on conventional loans. Why? Because the government realizes the importance of small businesses when it comes to creating jobs and spurring economic growth. It’s vital to the U.S. economy.