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    3 Replies Latest reply on Jan 9, 2010 6:06 AM by toplender

    Confidentiality and Small Business Loans

    booboo Wayfarer
      Is it typical practice of the SBA or a lender to keep all business activities confidential?

      Will they sign a non disclosure?

      Thanks
        • Re: Confidentiality and Small Business Loans
          phanio Pioneer

          Don't worry, they will keep your information confidential. But, they, and other investors like VCs or angels, will not sign NDA. Why, because most NDA restrict not only talking about the business but about the market and industry and so on. And, these bankers or investors may be or in the future may talk to others in your market or industry and they do not want to restrict themselves from that.

          Bank and the SBA, regarding its loan programs, have to follow very strict privacy policies (I am sure you get new dosclosures with each statement).

          Laslty, if you have to rely on third parties like banks and investors - sometimes you just have to take a chance. But, I am sure you will be OK.

          Business Money Today
          www.BusinessMoneyToday.com
          • Re: Confidentiality and Small Business Loans
            Bridge Navigator
            Any reputable investor or VC will sign a Confidentiality Agreement.

            A typicall CA (Or NDA as some call it) covers non-public information only; i.e. general industry information and informtaion already in the public domain is not included.

            I have also had banks sign CAs to cover company proprietary information. On small loans, you might have a more difficult time with this with the banks.

            Think of it this why, what can they do with the information? Can really hurt you?
            • Re: Confidentiality and Small Business Loans
              toplender Newbie
              Yes, any honest lender would be happy to. If you need one I've got a great SBA guy that I use who is awesome...Let me know if you need him.