Probably not.  SBA loans still need to be underwritten by both the orginiating bank and the SBA.  Due to over 154% increases in defaults in 2008 - their underwriting standards have really tightened.  Additionally, they are now forgoing fees - fees that were used to cushion defaults.   What is it you are struggling with.  Maybe that is what you need to work on.

My experience with SBA is that you only get a loan if you can prove you do not need it.  I have always had better luck borrowing from the bank rather than the SBA.  Of course, SBA makes some ridiculous loans, like the company that was a start up to make baseball bats.  No business, no factory, no experience but SBA chose to loan $250,000.00 and of course to a minority borrower. Of course the money was spent, but no baseball bats were ever made.  The loan just was defaulted on and SBA just wonders what went wrong. This is the normal course of business for SBA.  If you need additional financing, you better believe the SBA of the past is NOT the answer. Will this change?  Notice the word 'CHANGE'.  Election rhetoric is one thing, but don't hold your breath.  I hope the SBA will become something other than just a bunch of bureaucrats sitting in their office, throwing your tax dollars away and become a help to restart our economy and create jobs.

Probably not.  SBA loans still need to be underwritten by both the orginiating bank and the SBA.  Due to over 154% increases in defaults in 2008 - their underwriting standards have really tightened.  Additionally, they are now forgoing fees - fees that were used to cushion defaults.   What is it you are struggling with.  Maybe that is what you need to work on.

My experience with SBA is that you only get a loan if you can prove you do not need it.  I have always had better luck borrowing from the bank rather than the SBA.  Of course, SBA makes some ridiculous loans, like the company that was a start up to make baseball bats.  No business, no factory, no experience but SBA chose to loan $250,000.00 and of course to a minority borrower. Of course the money was spent, but no baseball bats were ever made.  The loan just was defaulted on and SBA just wonders what went wrong. This is the normal course of business for SBA.  If you need additional financing, you better believe the SBA of the past is NOT the answer. Will this change?  Notice the word 'CHANGE'.  Election rhetoric is one thing, but don't hold your breath.  I hope the SBA will become something other than just a bunch of bureaucrats sitting in their office, throwing your tax dollars away and become a help to restart our economy and create jobs.

It would seem that with all the money being provided by the Federal Government for BIG business,, the Fe Gov would think of the small guys ( Small Businesses). Yet as small businesses continue to wait, the economy continue to decline. I hold out hope for the 'powers that be' to come around and support the backbone of the American prosperity. lose weight quicklysun auto salesminneapolis landscapingfree car auctioncar auctions online Message Edited by ChristineL on 01-06-2010 10:42 AM Message Edited by NicoleD on 01-12-2010 12:45 PM

WOW...guess I should have told them I needed money for nothing.  I can't even get $11,000 dollars for a piece of equipment to upgrade my business.  Probably would have had better luck lying and saying it was for a car.      

WOW...guess I should have told them I needed money for nothing.  I can't even get $11,000 dollars for a piece of equipment to upgrade my business.  Probably would have had better luck lying and saying it was for a car.      

Why do most lenders run away fast from SBA loans. I have heard excessive paperwork, exhorbitant fees, or SBA won't honor the guarentee. All valid reasons but if things have changed from past abuses why aren't the lenders educated about loan programs?

Why do most lenders run away fast from SBA loans. I have heard excessive paperwork, exhorbitant fees, or SBA won't honor the guarentee. All valid reasons but if things have changed from past abuses why aren't the lenders educated about loan programs?

While I risk sounding like a broken record....these are the very reasons I created Preneuraholics.com (see signature). Americans need to come together and create change to the current system of funding. What I did was come up with a concept whereby entrepreneurs fund each other. Sounds crazy, but it's entirely doable. Check out the website to learn how this is possible.