Section 502 of the Recovery Act (stimulus package) authorizes the SBA to guarantee up to 90% of a 7(a) loan, with the exception of the SBA Express Program that remains a 50% guarantee. Moreover, as part of the stimulus package all SBA loan application fees have been waived. These changes are projected to apply to $8.7 billion of 7(a) loans and $3.6 billion of Section 504 loans (SBA).
We strongly recommend all clients consider SBA as an option as small to mid-sized banks across the country are slow but surely increasing participation in the program. We structure our business plans to suit the SBA and private investors. Plus, with minor tweaking, they can be utilized for grant applications and other purposes. Custom plans (versus templates and software) allow the flexibility for clients’ success with the SBA, private investors and more.
Ask for a free consult at tim@thebusinessplanconsultants.com.
Subscribe to:
Post Comments (Atom)
1 comment:
The SBA 7a is one of the few commercial loans available for those who need financing but lack sufficient down payment money or equity.
Post a Comment