Stimulus Package will Ignite SBA Lending! SBA loan guarantee increased to 90,, - VR Business Sales Blog

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Monday, February 16, 2009

Stimulus Package will Ignite SBA Lending! SBA loan guarantee increased to 90%.

There has been little news in the media about what the stimulus package will do for small business, in fact many have said there is very little in it for small business.  Frankly I don't know how they missed this but the SBA 7a loan program got a major boost in the stimulus package.  SBA loans have never looked so good for both lenders and borrowers.  Check this out!
 
$730 million for SBA programs, here is where it is going to go...
 
SBA loan guarantees:  $255 million to allow the SBA to increase the loan guarantee to the banks from 75% to 90%!  This is a great deal for the banks and should make SBA loans very attractive to them. 
 
Fees: $375 million to waive or reduce SBA loan fees - this will lower loan costs for borrowers.
 
 
This is a good deal for the banks and a great deal for both buyers and sellers.  SBA loans should be more available and with lower fees. 

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