Recently, the U.S. Government Accountability Office (GAO) has published their investigation on the fraudulent activities with the Small Business Administration (SBA) managed programs. Most entrepreneurs looking for help in the program to provide capital are dismayed. And they have reason to be. Banks are more conservative now more than ever because of the economic crisis; the SBA programs are the only hope for most entrepreneurs. Since it is wrought with fraud issues, the effect can be felt by entrepreneurs who want to set up profitable, legitimate businesses.
In the past, asking for federal contracts could be processed in two or three weeks but because of this issue and with the ongoing investigation, the time it takes to process an application takes longer than expected without any guarantees that it will be approved. While conscientious entrepreneurs opt for bootstrapping because of credit difficulties, the problem with the SBA takes a toll on those who do not have the finances to do the same.
If you are one of those who want to take advantage of the SBA programs, you might want to have a back-up plan for you to jump-start or upgrade your business. There are other ways to finance your business and applying for the SBA programs is just one of many.
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