Compiled By: Kent Hoover
(New Mexico Business Weekly, April 23, 2010) Congress extended higher government guarantees and reduced fees on U.S. Small Business Administration loans through May 31, but the SBA wants a longer extension. The economic stimulus bill increased the guarantee on the SBA’s flagship 7(a) loan program from the usual 75 percent to 90 percent, and reduced or eliminated fees for borrowers and lenders. These enhancements sparked a rebound in SBA lending by making the loans less risky for lenders and more affordable for borrowers. Through April 12, 7(a) lending this fiscal year — which began Oct. 1 — totaled $7.9 billion, up 112 percent from the same period a year earlier. The first two quarters of this fiscal year were the best opening quarters ever for the 7(a) program, according to the SBA. The stimulus provisions also brought 1,200 lenders back to the SBA. “These programs have been successful in helping jump-start our economy, which is why we will continue to work with Congress on a longer-term extension of the increased guarantee and reduced fees,” said SBA Administrator Karen Mills. Click here to read more…