SBA Makes it Easier for Small Businesses to Get a 7a Loan
April 1st, 2009
For those of you looking for some good news in this economy, here’s one. SBA has temporarily eliminated the upfront guaranty fees on eligible SBA 7A loans until the SBA exhausts the funds dedicated to the Recovery Act (estimated to be $8.7 billion) or on loans approved through approximately December 31, 2009. (Please be aware that the SBA ¼ point guaranty fee for loans with maturities of 12 months or less will continue to apply.)
The money be used for:
- Purchase, construction or expansion of owner-occupied real estate.
- Purchase of machinery, equipment, furniture, fixtures and leasehold improvements.
- Business acquisition or partner buy-outs.
- Debt refinancing.
Why you should consider an SBA loan:
- Need longer amortization to afford note payments (up to 25-year note and amortization).
- Cannot afford higher down payment requirements (as little as 10% down).