SBA lending fails to see upturn

Despite aggressive 90% guarantee limit, fee waiver, loans fall

[caption id="attachment_14202" align="alignright" width="215" caption="Michael Rice and Mark Quinn"][/caption]

NORTH BAY - Even with aggressive new rules for Small Business Administration loans intended to increase lending, the program hasn't delivered the punch it intended.

In March of this year, the SBA announced an extension of its program as part of the federal recovery act. The recovery act allotted $730 million to the SBA to go toward five programs.

There was $375 million set aside for temporary fee eliminations on SBA loans as well as an increase of guarantee limits from 75 percent to 90 percent. Also, there was an expansion of the microloan program and a program called the American Recovery Capital that enables banks to make 100 percent guaranteed loans for struggling business owners for up to $35,000.

This was all created to help stimulate lending and help small businesses survive the economic downturn.

© The North Bay Business Journal  |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments
Switch to our Mobile View