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Financing For small businesses, the Recovery Act temporarily eliminates SBA guaranteed 7(a) and 504 loan fees and offers tax benefits. For lenders, it temporarily eliminates loan fees on Section 504 loans. The fee eliminations are retroactive to Feb. 17, 2009, the day the Recovery Act was signed. The Act also provides guarantees up to 90 percent on some types of 7(a) loans to qualified small businesses. The temporary loan fee eliminations and 90 percent guarantee provisions will apply to approximately $8.7 billion of 7(a) loans and $3.6 billion of 504 loans. SBA estimates this will cover lending in both programs through calendar year 2009.
The DFP is a pilot program that allows dealers to borrow against retail inventory and acts as a revolving line of credit for a dealer to obtain financing for retail goods. The dealer repays the debt as their inventory is sold and can borrow against the line of credit to add new inventory. Starts July 1, 2009
SBA Loan Product Comparison Chart
SBA's 7(a) Loan Programs 7(a) loans are the most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.
If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you. SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.
Patriot Express Loan Program - Patriot Express Lenders in Wisonsin
Patriot Express is available to military community members including veterans, service-disabled veterans, active-duty service members participating in the military’s Transition Assistance Program, Reservists and National Guard members, current spouses of any of the above, and the widowed spouse of a service member or veteran who died during service, or of a service-connected disability.
(7a) Guaranty Loan Programs, Certified Lenders (CLP) and
Preferred Lenders (PLP) are those who have been heavily involved in regular SBA loan-guaranty processing and have met certain other criteria. They receive a partial delegation of authority and are given a three-day turnaround by the SBA on their applications (they may also use regular SBA loan processing). Preferred/Certified lenders account for nearly a third of all SBA business loan guaranties. Maximum loan amount is $2 million, however, the maximum dollar that SBA can guaranty is $1.5 million.
Certified Development Company (504) Loans - Wisconsin Lenders Under the Recovery Act -
A new program to guarantee Section 504 program first mortgages will provide fresh liquidity to the first mortgage market. Through this program SBA will establish a process for private sector entities to apply for federal guarantees on pools of first lien position Section 504 loans. A new Section 504 refinancing program will help expand existing long-term projects by working with Certified Development Companies to restructure and refinance certain existing loans into SBA-backed 504 loans.
The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community or region. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. Wisconsin has seven CDC's, each covering a specific area. Additional information on SBA's 504 loan program can be found at
www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html Under the Recovery Act - Expanding SBA’s microloan program provides extra funding for SBA-backed microlenders across the country. The bill provides enough for $50 million in new SBA microloans, which are delivered by non- profit, community-based intermediary lenders across the country. These loans can be for up to $35,000 and come with technical assistance and training for every borrower
Combines the resources and experience of the U.S. Small Business Administration with those of locally based nonprofit organizations to provide small loans and technical assistance to small businesses. Under the MicroLoan Program, the SBA makes funds available to qualified nonprofit organizations, which act as intermediary lenders. The intermediaries use these funds to make loans of up to $35,000 to new and existing small businesses. In addition, the intermediaries provide management and technical assistance designed to help ensure success. The first step in applying for a MicroLoan is to contact one of our local intermediary lenders.
For additional information on the Microloan Program, visit www.sba.gov/services/financialassistance/sbaloantopics/microloans/index.html. SURETY BONDS - What is a SuretyBond? Under the Recovery Act: Expanding Surety Bond Program limits will help small businesses compete for the billions of dollars in contracts that are needed to implement the Recovery Act. By raising the maximum amount for contracts that qualify for SBA surety bonds to $5 million, and up to $10 million for certain contracts, more small businesses will be able to help drive economic recovery.
www.sba.gov/smallbusinessplanner/start/financestartup/BOND_PROG.html
SBA can guarantee bonds for contracts up to $5 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract. SBA will also guarantee a bond on a federal contract up to $10 million following certification by the contracting officer that the bond guarantee is required. Wisconsin Surety Agents
SPECIAL PURPOSE LOANS -
http://www.sba.gov/services/financialassistance/SpecialPurposeLoans/
ExportExpress Export Assistance - Wisconsin Export Assistance, contact: Jack Nevell, Regional Manager, International Trade Programs, U.S. Export Assistance Center, 200 Adams Street, Suite 2450, Chicago, Illinois 60606. Tel: 312-353-8065, Fax: 312-353-8098. | ||