90 Percent Guarantee on SBA 7a Loans End

The authorization for the 90 percent guarantee on 7(a) loans ended on May 31, but the authorization for fee waivers is in place through September 2010. Unless Congress authorizes additional funds the SBA guarantees on 7(a) loans will be 85% on 7(a) loans $150,000 or less and 75% on 7(a) loans over $150,000.

As part of the Recovery Act enacted on Feb. 17, 2009, SBA received $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to reduce borrower fees on most 7(a) and 504 loans. Due to demand from small businesses for available credit, the original $375 million provided under the ARRA for these loans was exhausted in November. Since then, additional funds have been provided for short-term extensions, and those funds also have been exhausted.

For more Information, go to:

SBA Press Release May 26, 2010

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