Personal finance personality Dave Ramsey didn't hold back when weighing in on a caller's plan to finance an investment property using a Small Business Administration-backed option.

“I really hate the Small Business Administration,” Ramsey said. “They suck.”

During a recent episode of “The Ramsey Show,” Charles from Sacramento, California, asked whether pulling out an SBA-backed loan that locks in an interest rate for an investment property made sense. While his financial adviser had presented it as one of several options, Ramsey immediately shut the idea down.

Don't Miss:

A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why

Avoid the #1 Investing Mistake: How Your ‘Safe' Holdings Could Be Costing You Big Time

“If you've been listening to this, you know I don't borrow money or tell people to borrow money, right?” Ramsey said. When Charles acknowledged that, Ramsey's answer was direct: “So, the answer would be no.”

For Ramsey, the issue wasn't just the loan itself. He warned that SBA-backed borrowing often ties into a borrower's broader financial picture, increasing the stakes far beyond a single property.

“The SB lock is always tied to other assets as well,” he said. “So you're putting all of that at risk to screw around with a rental property.”

As the call went on, things got even more complicated. The property Charles wanted to buy wasn't in California, but in Guam, and it belonged to his wife's grandmother.

Trending: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.

Ramsey's reaction was immediate and emphatic: “No, no, no, no, no, no, no.” He went on to explain that long-distance rental properties come with additional complications that many investors underestimate.

“We do not have rental property that's long distance,” he said. “It's a long-distance headache.”

He also pointed out that investing outside the U.S. introduces another layer of uncertainty. While not saying any specific country would act unpredictably, Ramsey stressed that investors shouldn't assume other markets function the same way as the U.S.

“We Americans think that everywhere else in the world still functions the way the United States functions and it doesn't,” he said. They can be “a freaking banana republic.”

See Also: Don't risk buyer's remorse — ask these critical questions every homebuyer should know.

At the core of Ramsey's advice was a broader warning about using financing to make a deal happen.

“You're trying to figure out a way to do something you can't afford,” he told Charles. “This guy's presenting you an option to finance something you can't afford to do.”

He framed the situation as a combination of high-risk factors like debt, personal guarantees and an uncertain investment, that could result in serious financial consequences.

“The risk level is through the roof,” Ramsey said, adding that the caller would likely regret moving forward.

While Ramsey said people are free to make their own decisions, his message remained consistent throughout the call: borrowing to fund a complicated, long-distance real estate investment is a move he strongly advises against.

Read Next: Thinking about ETFs? See what investment risks you should be aware of before you buy.

Image: Shutterstock

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga:

APPLE (AAPL): Free Stock Analysis Report

TESLA (TSLA): Free Stock Analysis Report

This article 'I Really Hate The Small Business Administration,' Says Dave Ramsey. 'They Suck' originally appeared on Benzinga.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.