Small Business Lending Bill

The “Small Business Lending Bill” aka “The Small Business Jobs Act” has not passed yet.

(Here is a quick rundown of what it means to SBA Lending: SBA HR 5297).

Republicans and Democrats are still fighting about the number of amendments that are attached to the bill and if the information I’ve heard is correct, it came down to the Republicans wanting 4 amendments to HR 5297 and the Democrats only wanting to allow 3.

Now, I know it is not that simple - far from it - but if both sides are in agreement that the bill is truly good for our country and there seems to be such widespread support for it then hopefully they can find a way to get it done.

We’ll see.

A complete summary of the bill on the United States Senate website can be found here

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SBA Loan Fees - Is The Fee Waiver Coming Back?

by John King on July 15, 2010

SBA 7a and 504 Fee Waivers

Funds for SBA 7a and 504 fee waivers that were part of the Recovery Act expired on May 31st and the proposed legislation to extend it is unlikely to pass.

H.R. 4213 (or the “Extender Bill” as it has been called) passed in the House, but the Senate didn’t vote on it since it includes other spending items like tax deductions and unemployment benefits. It remains to be seen if the bill can be passed or if the fee waivers will be added to other legislation.

The waivers have been important part of the increase in SBA lending over the first half of this year and they have saved business owners a lot of money, but since SBA fees are financed into a loan they are not as crucial to someone seeking financing as they are not an up front/out of pocket expense.

As a result of the fee waiver expiration, the SBA Loan “Recovery Queue” has been reactivated for those who hope to sidestep the fees should the bill pass.

A more promising bill is HR 5297 since it includes a refinance provision as well as much larger loan amount limits.

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New SBA Bill - HR 5297 - BIG, Good Changes

July 15, 2010

HR 5297 - SBA Refinances, Larger Loans, Larger Companies Eligible
SBA lenders have been talking about this for a while now and the latest bill - H.R.5297 (the “Jobs 3 Bill”) - has been passed by the House and the Senate will now take it under consideration.
This is the bill that stands to have the most [...]

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Purchase Order Financing

June 30, 2010

Purchase Order Financing - The Secret Weapon of Small Business
Purchase order financing is “transactional financing” where a purchase order lender finances the production of hard goods for an otherwise undercapitalized business.
The current restricted credit environment has made things very difficult for small and mid-sized businesses - especially those who sell goods to larger companies, big [...]

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SBA 504 Secondary Market Coming Back

June 24, 2010

SBA 504 Secondary Market for First Mortgage Loans Returns
The Small Business Administration announced today the first 9 “Loan Pool Originators” authorized by the SBA to sell pools of SBA 504 first mortgage loans.
The new secondary market is important because for the last few years most (formerly) active SBA lenders have been sitting on the [...]

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SBA 504 Rates Drop Below to 5.21% for July

June 24, 2010

SBA 504 Rates Heading Lower (Again)
504 loan rates have headed back down after drifting upwards earlier in the year.
The current rate for the 504 20 year fixed rate second mortgage for real estate is 5.21%.  (10 year fixed rates which are typically used for SBA Equipment loans are at 4.60%).
504 rates have hovered near 6% [...]

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SBA Loan Fees Waived

April 18, 2010

SBA 7a & 504 fees Waived Through May
SBA 7a and SBA 504 loan guarantee fees have been waived again as another extension of the Recovery Act was signed by President Obama Friday morning.
The current extension will last until the end of May and will include a continuation of the SBA 7a 90% guarantee.
Still no news [...]

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SBA Loan Alternatives…Asset Based Loans

April 8, 2010

Asset Based Loans - A Good Alternative to SBA Loans
SBA 7a and 504 loans are 2 of the best loan options available to those in need of commercial financing at the moment, but the reality is that many small and mid sized businesses that have good cash flow cannot qualify at this time.
It could be that [...]

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SBA Loan - Need One? Call Your Congressperson…

February 12, 2010

Small Business Loans are sooo close to getting better and you can help. 
The House and Senate have drafted very similar bills to increase access to capital for Small Business, but neither has gained enough traction yet.  The Senate Committee on Small Business has passed their version, but the House’s bill has stalled.
If you own a [...]

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SBA Jobs Bill…not just another job’s bill…

December 29, 2009

Changes to Small Business Loan Programs Should Help Many
A new bill that could go along way towards helping America’s small businesses get back on their feet is currently being considered in Washington.  The bill would likely give banks and lenders the impetus they need to make loans to the many credit-worthy businesses who need to refinance or who need working [...]

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