23rd Jun 2008
Don’t Pay For SBA Loan Processing Help
The other day, I talked with someone who told me she had paid $1200 to someone to help prepare her SBA loan paperwork. She said the bank told her they would only take the loan with an SBA guarantee and that they weren’t “comfortable” with doing the paperwork themselves. So the recommended someone (probably the banker’s brother-in-law!) to help with the paperwork at a cost of $1,200.
Now, I understand that SBA paperwork is a daunting thing. Like any government paperwork, it’s full of nearly incomprehensible questions and ridiculous requirements. But, doggone it, there’s just no reason to have to pay someone $1,200 for this work!!!
Here’s what I would suggest in this case:
1. Find another bank. There are plenty of banks who are SBA preferred and SBA certified lenders, who know how to help you with the paperwork.
2. Go to the SBA directly and ask for help. Your local SBA person can help you walk through things.
3. Go to your local SCORE chapter and ask for help. Many SCORE chapters have weekly Q&A sessions where you can find answers.
4. Find a CPA (you will need one anyway) and have this person help you. It will be a good way for you to test this CPA’s qualifications. If he or she doesn’t know what an Income Statement is, for example, you have the wrong person!
For more information on obtaining a loan with an SBA guarantee, go to this StudentDC article.
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