The “sba” is the most absolute garbage organization I’ve ever taken part of. Complete scam. It’s literally only for minorities doing new startups whos businesses will fail 99% of the time. I applied multiple times and always get the same answers. Even went in person. Hoop after hoop only to be denied every time. I know people who got the loans. Big loans too. New restaurants etc. lasted a yr. Closed. Nobody gives a shit. They dont support the backbone businesses wanting to expand just the garbage.
I promise you, these are not all minority borrowers starting a restaurant.
It is important to note that the SBA does not LEND, they guarantee loans. (they provide a 75%-85% guarantee to the lender in case of default, depending on the loan amount / program)
Much like the FHA does not lend money to homebuyers, they guarantee a large portion of the loan amount to the lenders in case the buyer defaults.
When applying for an SBA loan it is a good idea to work with a SBA preferred lender. These companies are able to fund SBA loans completely in house without having to get SBA approval FIRST. They can close in as little as 30-45 days.
It is also VERY IMPORTANT to note that each lender has their own guidelines and criteria on top of the SBA guidelines.
Regarding your comment about expansion loans, there are companies that ONLY do SBA loans for expansion, such as Newity / Northeast Bank. There are companies that will not touch restaurant startups, to your point - high failure rate. I'm purchasing an existing successful business in the quick-serve restaurant industry. Some lenders won't touch, even with good numbers.
One lender might send you packing, another might say "no problem!"
For example, US Bank told me because I don't have two years of direct experience in the industry they won't even consider it, whereas other lenders said they can work with that.
Another part of my scenario, haven't really had income in the last couple of years, took time off from my career to explore other options. A couple of lenders said they can't work with that. Other lenders said, "No problem! You're purchasing a business with cashflow to support paying you going forward, we can work with this." The fact that they can do it both baffles me and makes sense at the same time!
Another point - some wanted a 10% cash injection from me. Others 5%. So far, I have one that is only asking for 2.5%.
Point is, use only SBA preferred lenders, talk to MANY as they all have different underwriting criteria.
Apply with many, if you need to.
Some are VERY strict and difficult, others are way, way more relaxed.
I'm loving my bank contact right now, where I've chosen to send my loan.
I can put you in touch with him if you like.
He's working with me to structure my deal in a way that he knows will get approved. His underwriters will also work with us to try to make it happen, even if they won't approve it on first inspection. "If we do this, and this, and structure it this way, we can approve it".
I don't have the loan yet, but he's very experienced and is certain I will get approved.
This House Hearing today seems to be related to SBA Administrator Kelly Loeffler's goals. She should read the Committee report on H.R. 1156. I did. It mentioned how much claims for unemployment and related loans were fraudulent.
Fantastic! SBA is a boondoggle for liberal fraud under the auspice of business start up subsidies. Many EPA climate activist organizations got their start with SBA money.
"SBA does not provide grants for starting and expanding a business. SBA provides grants to nonprofits, Resource Partners, and educational organizations."
Stop the SBA grants, period, they are mostly abused I'm certain.
Keep the SBA loan guarantee program, that enables people to obtain bank financing to start or expand a business.
I'm purchasing a business right now. If not for the SBA guaranteed loan program I would not be able to qualify. The SBA is guaranteeing 75% of the loan amount to the bank issuing my loan, in case I default. This allows the bank to loosen the guidelines they would normally impose, and makes it possible for me to actually qualify. Without the SBA guarantee to the bank, I wouldn't be able to do this.
It's a similar situation with housing. If FHA didn't offer mortgage insurance and there weren't private mortgage insurers for conventional home loans, very few people would ever have the 20% downpayment they would need to otherwise qualify for the house.
In my case, I'm able to buy this business with 2.5% of the total loan amount out of my pocket... which is amazing.
The “sba” is the most absolute garbage organization I’ve ever taken part of. Complete scam. It’s literally only for minorities doing new startups whos businesses will fail 99% of the time. I applied multiple times and always get the same answers. Even went in person. Hoop after hoop only to be denied every time. I know people who got the loans. Big loans too. New restaurants etc. lasted a yr. Closed. Nobody gives a shit. They dont support the backbone businesses wanting to expand just the garbage.
Sorry to hear that you've had that experience. I'm currently in the process myself (business acquisition) and things are looking great so far.
Check this out. You can see there were over 70,000 SBA loans funded in 2024 nationwide, and already just under 36,000 funded year-to-date 2025. https://careports.sba.gov/views/7a504LenderReport/LenderReport?%3Aembed=y&%3AisGuestRedirectFromVizportal=y
I promise you, these are not all minority borrowers starting a restaurant.
It is important to note that the SBA does not LEND, they guarantee loans. (they provide a 75%-85% guarantee to the lender in case of default, depending on the loan amount / program) Much like the FHA does not lend money to homebuyers, they guarantee a large portion of the loan amount to the lenders in case the buyer defaults. When applying for an SBA loan it is a good idea to work with a SBA preferred lender. These companies are able to fund SBA loans completely in house without having to get SBA approval FIRST. They can close in as little as 30-45 days. It is also VERY IMPORTANT to note that each lender has their own guidelines and criteria on top of the SBA guidelines.
Regarding your comment about expansion loans, there are companies that ONLY do SBA loans for expansion, such as Newity / Northeast Bank. There are companies that will not touch restaurant startups, to your point - high failure rate. I'm purchasing an existing successful business in the quick-serve restaurant industry. Some lenders won't touch, even with good numbers.
One lender might send you packing, another might say "no problem!" For example, US Bank told me because I don't have two years of direct experience in the industry they won't even consider it, whereas other lenders said they can work with that.
Another part of my scenario, haven't really had income in the last couple of years, took time off from my career to explore other options. A couple of lenders said they can't work with that. Other lenders said, "No problem! You're purchasing a business with cashflow to support paying you going forward, we can work with this." The fact that they can do it both baffles me and makes sense at the same time!
Another point - some wanted a 10% cash injection from me. Others 5%. So far, I have one that is only asking for 2.5%.
Point is, use only SBA preferred lenders, talk to MANY as they all have different underwriting criteria. Apply with many, if you need to. Some are VERY strict and difficult, others are way, way more relaxed. I'm loving my bank contact right now, where I've chosen to send my loan. I can put you in touch with him if you like. He's working with me to structure my deal in a way that he knows will get approved. His underwriters will also work with us to try to make it happen, even if they won't approve it on first inspection. "If we do this, and this, and structure it this way, we can approve it". I don't have the loan yet, but he's very experienced and is certain I will get approved.
My banker told me about them when I started my business and told me how great they are. I called once and got bad vibes and quit.
Amen.
I don't trust this insider trader snake.
This is an achievement worthy of national announcement? It should be grounds for firings and arrest instead.
It probably won't happen but we can hope.
This House Hearing today seems to be related to SBA Administrator Kelly Loeffler's goals. She should read the Committee report on H.R. 1156. I did. It mentioned how much claims for unemployment and related loans were fraudulent.
https://rules.house.gov/bill/119/hr-1156
IMHO
Edit. Correction: Hearing is Monday, 3-10-2025 at 4pm Eastern.
There's a whole host of fraudulent including many Hollywood stars and influencers.
and a shit load of blue collar workers.. I know several that lied and took giant loans.
Yes.
Fantastic! SBA is a boondoggle for liberal fraud under the auspice of business start up subsidies. Many EPA climate activist organizations got their start with SBA money.
"SBA does not provide grants for starting and expanding a business. SBA provides grants to nonprofits, Resource Partners, and educational organizations."
Stop the SBA grants, period, they are mostly abused I'm certain. Keep the SBA loan guarantee program, that enables people to obtain bank financing to start or expand a business.
Tons of millionaires from CA did this.
This is about time. Thanks brain_dead for posting. Great news.
You are welcome.
Oh, I remember her. She sold our state out during the 2020 steal. I can't stand that woman. Can't believe Trump gave her a spot.
Make sure you let people know. I don't know her.
Why do we need SBA at all? It ain't in the Constitution. And most small businesses do fine without it. Many probably don't know it exists.
I'm purchasing a business right now. If not for the SBA guaranteed loan program I would not be able to qualify. The SBA is guaranteeing 75% of the loan amount to the bank issuing my loan, in case I default. This allows the bank to loosen the guidelines they would normally impose, and makes it possible for me to actually qualify. Without the SBA guarantee to the bank, I wouldn't be able to do this.
It's a similar situation with housing. If FHA didn't offer mortgage insurance and there weren't private mortgage insurers for conventional home loans, very few people would ever have the 20% downpayment they would need to otherwise qualify for the house.
In my case, I'm able to buy this business with 2.5% of the total loan amount out of my pocket... which is amazing.
I did and didn't need them.
Take it one step better.....no loans for permanent residents. They have NO intention of becoming a citizen. They are just here for the freebies.
I understand that.