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Mar 3, 2010
SBA “no fees” extended until April 30!

SBA “no fees” extended until April 30!

SBA Recovery Act Provisions Extended to April 30


Keith Merklin of Live Oak Bank shared the following important SBA news from Naggl.org:


Yesterday new legislation was introduced and passed by the House of Representatives (HR 4938), followed late last night by approval in the Senate.The measure (HR 4938) that extends the Recovery Act SBA loan provisions through April 30: Up to $40 million is available for 7(a) and 504 fee reductions/waivers and the 90% 7(a) guarantees, as well as extension of SBA’s authority to provide the higher guarantee (up to 90%). 


NAGGL expects President Obama to quickly sign this legislation into law.


Details for interested parties:


The source of the $40 million is funding for 7(a) guarantees which was included in SBA’s regular appropriation (thus no budget problem). Specifically, the Consolidated Appropriations Act of 2010 (enacted 12-16-09) provided SBA appropriations for FY 2010. This included $80 million for 7(a) subsidies.  This appropriation has now been expanded to permit SBA to use up to $40 million for fee reductions and the higher 7(a) guarantees, in addition to the sunset on the guarantees being extended.


NAGGL will keep members updated as more news is available about this and all pending legislation affecting the 7(a) business loan program. Visit naggl.org regularly.