Time for some good news! According to Nancy Kaffer, the stimulus plan can help backed up SBA backed loan programs. Well, definitely this is good news. I quoted the news below.
U.S. Small Business Administration officials are hopeful the American Recovery and Reinvestment Act will breathe new life into the SBA-backed credit markets.
The stimulus package allocates $730 million to the SBA, and changes its programs in an effort to increase accessibility for small businesses.
The stimulus funding includes: $375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares — up to 90 percent for certain loans; $255 million for a new loan program to help small businesses meet existing debt payments; $30 million for expanding SBA's microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders; and $20 million for technology to streamline SBA's processes, according to an SBA statement.
The bill also allows the SBA to offer loan guarantees of up to 90 percent and provide deferred payment loans of up to $35,000 for qualified businesses to make payments on existing loans. And, it will allow business owners to refinance existing loans for fixed assets.
Source: Crain's Detroit Business