Update 2 (12/22/2010): Bah! Humbug!
SBA has just released a bulletin stating that due to the sheer volume of SBA lending in the last week the fee waiver funds are not expected to last through 12/31!
Stay tuned for another update…
Update (12/22/2010): The SBA Fee Waiver and 90% Guarantee have been extended. The House approved the Continuing Resolution and the SBA fee waivers and the 90% guaranty for 7a loans will continue until March 4th 2011 or until the funds are exhausted – whichever occurs first.
Update (12/21/2010): The Senate voted this a.m. to end debate on the current Continuing Resolution which is necessary to keep the government running until March 4, 2011. The vote to end debate was 82 to 14 and they will formally vote on the resolution later today. The House is expected to quickly approve it as well.
The Good News: The CR includes language that extends the SBA fee waivers for 7a and 504 loans as well as the 90% guarantee for 7a loans until March 4th or until the original amount of funding runs out.
The fee waivers provide significant savings on Small Business Administration Loans and the 90% guarantee provides added security for lenders which can increase odds for loan approval.
SBA Loan Fee Waiver Could Be Extended
A continuing resolution has been passed by the House that includes a provision to extend the SBA loan fee waivers for 7a and 504 loans into 2011.
The provision also includes an extension of the 90% government guarantee for 7a loans.
The Senate will vote on this resolution soon, so we will have to wait and see what they do with it.
Good News, Bad News
The good news is that the SBA is reporting that the money set aside to pay both 7a and 504 loan fees for small business owners should easily last through Dec 31st.
The bad news is that lenders and the SBA are inundated and things are starting to S-L-O-W down…and the Christmas and New Years holidays (December 31st is a Federal Holiday) are going to impact what gets done.