SBA Fee Waivers back in play, plus more!

After much anticipation, Congress has passed the bill to support small business loans! Here is a quick preview of the changes. After the bill is signed into law, the SBA will implement. As soon as we lenders get the published SBA policy change, we WILL be able to do more loans!

• Fee Reductions - - extends the authority for 7(a) and 504 fee reductions and 90% 7(a) guarantees through December 31 or until $505 million in appropriations is obligated.
• Maximum Loan Amounts (permanent increases) - - the loan maximum on:
o 7(a) loans set at $5 million gross and $3.75 million net (or guaranteed amount).
o 504 loans, including public policy loans, set at $5 million, except small manufacturer loans and energy loans are set at $5.5 million.
• Maximum Loan Amount of SBA Express (temporary increase) set the maximum amount of an express loan at $1 million for 1 year.
• Division of Large Loans - - upon request of a loan pooler, SBA will divide a large loan into $500,000 increments for inclusion in separate pools.
• Dealer Floor Plan Financing - - new financing program for dealers for cars, RVs, boats and manufactured homes, but sunset September 30, 2013.
• Alternative Size Standard - - pending SBA establishment of an alternative applicable to both 7(a) and 504, establishes a standard of maximum tangible net worth of $15 million and 2-year average net income after Federal income tax of $5 million which will apply to both programs.
• International Trade Loans - - makes numerous changes in international trade loans, including working capital, primarily permanent loan size increases to $5 million and 90% guarantees and making the export express program permanent.
• Debt Refinancing - - establishes a temporary 2-year program of business debt refinancing through the 504 program independent of the usually required job creation/preservation project.
• Guarantees of 1st mortgage loans - - extends the sunset on the new temporary program for partial guarantees of the bank portion of 504 financing. The program will expire 2 years after the date the first pool sale occurs.