No. The U.S. Government does not discriminate against anybody. This myth dates back to the days when SBA used to make "direct loans" to minorities in order to help the nation's minority business communities. This program has long been abandoned and replaced with the current "Guaranteed Loan Program" which has been very successful in helping all small business owners, without regard to color or race. Under the Guaranteed Loan Program, the bank approves the loan contingent upon the SBA issuing a guarantee. Once the bank receives the SBA's approval to guarantee (usually between 75% to 90% of the total loan requested), the bank funds the loan.

This SBA guarantee provides incentive to the bank to consider a loan it might otherwise deem too risky.