What can the SBA do for small businesses or people looking to start up a small business?
According to John Woosley, Director of the SBA in New Mexico, part of what the SBA does is guarantee bank loans by essentially co-signing loans in order to allow banks to make loans they would not be able to make without the guarantee. Prior to the passage of the Recovery Act, a large portion of SBA 7(a) loans had guarantees of 75-85 percent. The Recovery Act increased that guarantee to 90 percent to further reduce the level of risk for banks as an incentive to make more loans. In addition, Woosley explained that the Recovery Act provides funding to eliminate borrower fees on SBA loans that were previously as much as 3.75% More Information The actual Recovery Act can be found at the Library of Congress website www.thomas.loc.gov under the Bills alias, H.R. 1, or by going directly to this link: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1: . The Act is cumbersome and appears undecipherable to the average person. Another and perhaps better resource is from the Congressional Research
Related Questions
- Small Business Administration (SBA) and Small Business Development Center (SBDC) - How does the SBA define small businesses? Does my company qualify?
- Will SBA funding be limited to providing assistance to 7(j) eligible small businesses or is that simply the target group for services?
- What can the SBA do for small businesses or people looking to start up a small business?
