SBA Recovery Efforts

The SBA is implementing two key provisions laid out in the Recovery Act.  

 

They will temporarily raise guarantees to up to 90% on SBA's 7(a) loan program, through calendar year 2009, or until the funds are exhausted. This increase in guarantee levels will help provide banks with the greater confidence they need to extend credit during the current recession.

 

They will also temporarily eliminate fees for borrowers on SBA 7(a) loans and for both borrowers and lenders on 504 Certified Development Company loans, through calendar year 2009, or until the funds are exhausted. The fee elimination is retroactive to Feb. 17th, the day the Recovery Act was signed. SBA is developing a mechanism for refunding fees paid on loans since then.

 

For more information on the SBA and Treasury initiatives visit www.sba.gov .

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