SBA loan rip-off through Accion Texas

[Jorge82]

I had an SBA Loan through Accion Texas in Dallas in 2006 to build my first business, I was unexperienced and they got me to sign a contract for an $18,000 loan and charged me a $2,000 fee and 36% interest rate and I was never able to get off the loan or lower the interest rate. My business closed in the first year and I had to continue making the payments, they harrased me very much for two months that I was unable to make the payments becasue I lost my job too and they did not offer any type of protection or insurance. My monthly payments was $560 and the total I paid was $32,000. Total ripp-off and taking advantage of a first time hispanic business owner. I wonder how many other people have they done this to.

[phanio]

Sorry to hear about your orderal. ACCION usually has a very good reputation. Have you complained to the SBA?

Business Money Today

[KirkKimberley]

Hey Jorge82,

You can see why it is difficult for a lender to lend people money to first start a business (It's risky). That justifies the 36% interest rate. Your business failed (sorry about that), but you are still responsible for paying the money back.

Just a lesson for everyone looking for funding or a lender on this site. If your business or idea fails, you are still responsible for paying the debt. It is a part of doing business. If there was no risk, and everyone was excused from his/her loan, everyone would be doing it.

Jorge, you had a binding deal with this company. I'm sure you would not be arguing the 36% if you made money from your company. It is only when people's businesses fail do the want to be excused from his/her financial responsibilities. This company did not 'rip you off,' it just held you to your legal obligation.

Again, sorry about your loss, but that is the cost and risk of doing business. I do have to give you props for paying out the total loan. If and when you go for another loan, you have to let the lender know even though your business failed, you still paid back the original loan and all of the interest, in it's entirety.

Thanks,
Kirk

[rookietrader]

I never knew a 36% interest rate loan is legal. I've applied with accion before only to be denied without giving me a real reason but I see I would be better off going to a credit union and asking for a credit card or two or a personal loan.

[veikoh]

Did you made any business plan and calculated financials before you got this loan? Did they ask those or just wanted to get your signature as quickly as they could.
next time I would recommend to spend some money to accountant or financial professionals before taking such kind of obligations.

[rogercbryan]

First thing and I may be wrong... but I thought the min SBA Loan as $250,000. I don't think your loan had anything to do with the SBA. There are also guaranteed interest rates on SBA Loans. I think you got scammed my friend. The problem is if you sign the paperwork and they do nothing illegal you're stuck.

*I'm not a lawyer and this is not legal advice