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.
Stay tuned…
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1 2 Next »if the fees run out does that still mean 90 %guarantee is good till march 4th?
Hi Tim,
My understanding is that the 90% guarantee will go away when the fee waivers expire because the money set aside to support the higher guarantee is from the same pool of funds used to pay the fee waiver.
John
ever hear anything further on this:
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!
Hi Jeff,
I haven't heard anything, but the expectation is still for the funds for both the fee waiver and the higher guarantee to run out this week.
John
Is there a place to go that shows the current status of the fee waivers and the 90% vs. 75%? I can't tell if my banker is using this to close the loan or if things are truly winding down. Do you think there will be any extensions?
Hi Robert,
I've been told (haven't verified) that the funds ran out yesterday and I don't think an extension is likely at this time. There should still be a slim chance to get in on the waiver (and possibly the guarantee) for those loans that have been approved/authorized but just missed out on the funds. This is because a small percentage of loans will be cancelled for various reasons and the money earmarked for those loans should be put into a loan "queue" to be made available for those who were next in line.
However, there is likely a LARGE volume of loans that have been (or will be) approved/authorized in the coming days/weeks so any loans not approved yet will be way down the list.
It is likely that some lenders might now have approval issues with some loans because the 90% guarantee was making it easier for lenders to get comfortable with transactions they may have considered marginal.
John
If we got in the que on the 30th and our loan was already approved, do you think we have a chance of getting our fees waived?
Hi Aimee,
Sorry for the slow reply. Not sure if you have any news yet, but the SBA loan queue was closed to new loans on Jan 4th and there are more than $460 million in loans awaiting funding. Probably best to see what your lender can find out for you.
John
3-6-11
Are funds still in place for 7a loans.
Hi Sam,
Sorry for slow reply. SBA 7a loans are very much available. The funds for the fee waiver ran out around the beginning of the year.
John
1- After reading and trying to absorb as much of this program as I can, am I to understand that this program has been extended beyond the 12/31/12 limitation??
2- Further, what is the first step a person should take in becoming involved in this program??
Thank you