—Provision on Eliminated Fees Saves Borrower some $12,000—
The Fuego Mundo Restaurant became the first small business in Georgia to receive an SBA guaranteed loan under the American Recovery and Reinvestment Act with a 90 percent guarantee and no fees. The federal law provides $730 million to SBA and makes changes to the agency’s lending and investment programs so the agency can reach more small businesses that need help.
“We were already excited at the prospect of starting our new business concept,”said Masha Hleap-Hershkovitz, owner. “But with the benefits of this new SBA program to strengthen our business, we are even more optimistic at the prospects of success.”
Ms. Hershkovitz used a $550,000 SBA 7(a) loan from Signature Bank of Georgia to help finance her new, South American style wood-fire grill. It opened on June 5 at The Prado, a retail complex in Sandy Springs. She said the elimination of the loan fees totaled about $12,000, money she can now put back into her new venture.
“With the higher SBA guarantee, the lender risk was reduced,” added Terri Denison, SBA Georgia District Director. “The bank loan and SBA guarantee were approved in a matter of hours.”
Others who joined Denison at a special check presentation to Fuego Mundo included Burton Blackmar, Vice President of Signature Bank, and Eva Galambos, the Mayor of Sandy Springs. A native of Colombia, Hershkovitz closed on her loan from Signature Bank on April 2.
As of August 21, SBA has supported over $9 billion in small business lending, with the approval of $6.6 billion in loans since Feb. 17. Since the signing of the American Recovery Act, weekly loan dollar volume has risen more than 50 percent in the 7(a) and 504 programs, compared to the weekly average before passage of the act.
Fuego Mundo Restaurant
612 Perimeter Walk/The Prado
Atlanta, GA 30338