by Stacy Zemon
On March 2, President Obama signed legislation extending the SBA’s ability to provide small business loans enhanced by Recovery Act provisions, including the higher guarantee of SBA- backed loans and a waiver of loan fees.
This is the second time the Senate has approved additional funding since December.
How It’s Going To Work
Additional funding will support about $1.8 billion in lending by extending its ability to guarantee loans. It will help new small businesses to jump-start and existing businesses to grow.
Existing borrowers who are already in SBA’s Recovery Loan Queue will be funded first, followed by the new applicants who are eligible for the higher guarantee and reduced fees.
The increased guarantee and reduced fees on SBA loans helped put almost $22 billion into the hands of small business owners. As a result, average weekly loan approvals by SBA have climbed by 87 percent compared to the weekly average before passage of the Recovery Act.
The extension will provide higher guarantee for 7(a) loans through March 28, 2010. Reduced fees will be available until the additional funding is exhausted or the end of the fiscal year on September 30.
If you already took a 504 or 7(a) that is already funded, you will not be eligible for higher guarantee or waived fees.
More Support from SBA Is On the Way
SBA states that it will continue to provide small businesses with the tools they need to drive economic growth and grow jobs.
Stacy Zemon – Publisher and Chief Scribe
To her credit, Stacy Zemon has spawned more professional Mobile DJ business owners than anyone in the industry — anywhere! She is widely considered a leading authority and has become a distinguished leader during the course of her extensive career as a DJ Entertainer. Stacy is author of the world’s best-selling DJ books: The Mobile DJ Handbook, The DJ Sales & Marketing Handbook and The Mobile DJ MBA, and is a longtime writer for DJ Times magazine. Her mission is to provide educational resources for DJs that support their professional growth and financial prosperity. Write to her c/o Stacy@ProMobileDJ.com.