READY – SET – GO get your SBA-backed loans!

17. March 2009 by admin.

The Obama Administration announced yesterday, March 16, a stimulus plan for small business. Good to hear that the government is finally recognizing the 25.8 million small businesses in the U.S. and doing something to support entrepreneurs and capitalism!

The plan’s primary goal is to facilitate loans for start-ups and small businesses, namely: 1) reduce lending fees, 2) increase government guarantees on a portion of Small Business Administration loans up to 90%, 3) inject $15 billion into banks to thaw the credit market and boost lending to small businesses.

It looks like the plan is set up to eliminate borrower’s fees only until the end of the year – so don’t miss out!

I lifted a couple pertinent Q&A regarding specifics of the plan from the FAQ on Recovery Act by the U.S. Small Business Administration which I attached herein for your review. 

• Which loans are affected by the fee elimination and higher guarantees?

Beginning this week, the SBA will temporarily raise guarantees and eliminate fees for borrowers on certain of its 7(a) loans. 7(a) loans, which are partially guaranteed by the SBA, are issued by a bank to a small business to support its operations.

Additionally, the SBA has temporarily eliminated fees for borrowers and third party lenders on its 504 Certified Development Company Loans. These loans offer growing small businesses long-term, fixed-rate financing for major fixed assets, such as land, buildings and machinery and equipment.

• Is the elimination of borrower fees permanent and retroactive?

The temporary fee eliminations for 7(a) loans support an overall program level of $8.7 billion, while the temporary fee eliminations for 504 loans support an overall program level of $3.6 billion. Depending on loan volume in these programs, the SBA estimates that it will be able to eliminate these fees on loans approved through approximately December 31, 2009.

Fee eliminations will be retroactive for all eligible loans approved on or after Feb. 17, 2009. 

• Can I go to any lender in my area to take advantage of these new programs?

Only lenders who have been approved to participate in SBA lending programs can assist you with an SBA-guaranteed loan. Contact your local SBA District Office to obtain a list of approved participants in your area. Follow this link to locate the District Office nearest you: http://www.sba.gov/localresources/index.html.

Along with easing access to capital, the administration’s Small Business Plan calls for the elimination of all capital gains taxes on small and start-up businesses and for a Health Tax Credit that will provide a refundable credit of up to 50 percent on premiums paid by small businesses on behalf of their employees. 

The official release is also attached herein for your review; Obama Biden Plan for Small Business 

Posted in Marketing Discussion | 1 Comment »