Navigating the world of SBA funding (Small Business Administration Loans) can be challenging, especially when surrounded by myths and misconceptions. That’s why we’re here to shed some light and clarify the facts, helping you make informed decisions. In our recent podcast, our Director of Operations, John Hajgato, delved into common SBA loan myths, providing valuable insights that can benefit your business
Myth #1: Your Home is at Risk
A common concern is that missing an SBA loan payment could lead to the forfeiture of personal assets, including one’s home. While the SBA requires lenders to secure loans, they primarily focus on business assets. The prospect of seizing personal assets, like your home, is a last resort. In fact, it’s extremely rare and only occurs in cases of non-communication and non-payment. So, rest assured that the chances of losing your home over an SBA loan are minimal.
Myth #2: SBA Directory Removal
Changes to the SBA directory have raised concerns. If your chosen franchise brand missing from the directory, there’s no need to panic. Many brands are actively working to be listed, and the absence of a brand from the directory doesn’t necessarily reflect its viability. We can assist in providing lenders with the necessary data and information to instill confidence in the chosen franchise. We also published a fantastic Press Release with more information here if you are interested in understanding this change better.
Myth #3: Interest Rate Fluctuations
SBA loan interest rates may fluctuate, which can be a concern for potential business owners. However, even significant rate changes often result in minimal monthly payment differences. Moreover, there’s optimism that rates may decrease in the coming years, potentially benefiting borrowers. So, while interest rates are a factor to consider, they shouldn’t deter you from exploring the opportunities that SBA loans offer.
As your trusted partner, Benetrends is committed to providing guidance and support throughout the financing process. We’re here to demystify myths, answer your questions, and help you and your clients make informed decisions. If you’d like to delve deeper into any of these topics or have further discussions, please don’t hesitate to reach out to us at 267-498-0059 or visit our website for more information. Your success is our success, and we’re with you every step of the way!