The following was sent to SBA lenders today:
SBA Information Notice
Additional Funding Available and Extension of Authority for 7(a) and 504 Recovery Act Loans
The attached notice, 5000-1143, provides SBA an additional $60 million of funding to extend the 90% guaranty and fee relief as part of the American Recovery and Reinvestment Act of 2009.
Please note: Lenders with loans entered in SBA’s Recovery Loan Queue prior to March 2 will receive the fee relief, but will not receive the higher guaranty percentage unless they act by March 9. Please see notice for details.
New applications from March 2 on are eligible for both the higher guaranty and fee relief.
The attached notice, 5000-1143, provides SBA an additional $60 million of funding to extend the 90% guaranty and fee relief as part of the American Recovery and Reinvestment Act of 2009.
Please note: Lenders with loans entered in SBA’s Recovery Loan Queue prior to March 2 will receive the fee relief, but will not receive the higher guaranty percentage unless they act by March 9. Please see notice for details.
New applications from March 2 on are eligible for both the higher guaranty and fee relief.
Attached was an internal SBA memo for policy on current and new loans.
In my experience the ARRA has opened credit to small businesses considerably in my area. In fact when notice was sent out that it would be ending last month loan referrals from banks slowed by about half.
My advice – Apply for financing now before this allocation is spent.
Donovan
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