Mar 06, 2010

SBA Stimulus Funds Are Running Out

Back in October we posted about the availability of new lending for small businesses. Now it appears the stimulus money is running out (a second time), because so many small businesses have taken advantage of the new loan money. The programs at stake, the 7(a) and 504 lending programs, have been popular with banks because they increased SBA guarantees up to 90% for lenders, and they've been popular with small businesses because they decreased loan fees for borrowers. According to the Wall Street Journal's article on the dwindling SBA stimulus funds, "The 90% guarantee and reduced fees have catalyzed SBA loan activity, even as conventional loans have continued to decline. According to the SBA, average weekly loan volume has increased by nearly 90% since the stimulus measures kicked in one year ago." 
You can still sign up for the SBA loan queue and possibly get a loan if a borrower fails to qualify for their loan. Go to www.sba.gov/recoveryq/ to find out more.