Here is the latest on the SBA's portion of the bill. It has NOT been implemented yet, but is anticipated to take a short period for the SBA to issue new policy notices.
*504 loans may have the following changes. Eliminate the 1.5% Certified Development Company (CDC) fee for a 12 month period.
*Eliminate the 0.50% lender fee for a 12 month period.
*Reduce the Debenture fee from approximately 2.15% to 0.67% for a 12 month period.
*Guarantee the first mortgage until the $3 Billion is exhausted.
*Allow some refinancing, with very limited parameters up to 50% of the total project.
*7(a) loans may have the following changes.
*up to 90% guarantee (increased from 75%)
*reduce or eliminate the SBA guarantee fee for a 12 month period.
*improve the secondary market value of the 7(a) loan, which would make it more attractive for lenders to make SBA 7(a) loans.
Until these proposals are implemented by the SBA and notices are sent to lenders, we are still in a "grey" area and must operate under the current policy of SBA.
Next blog will outline the basics of what each applicant should have, in order to increase the likely hood of getting an approval.
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