SBA Hit and Miss Part 2

Recent policy changes with SBA are a mixed bag of "Hit" and "Miss".

"Hit": SBA at the last moment, approved an extension of the soon expiring fee waivers and higher loan guarantees. The Small Business Jobs Act was to expire 12/31/2010. It has now been extended thru March 4, 2011.

"Miss": What is not "common knowledge", is that the "funds" for the extension will most likely be EXHAUSTED very soon.. most think by 12/31/10! So what was the point? Perhaps it will allow just a few more applicants to benefit from fee waivers. Most will miss the deadline/exhausted funds.

"Miss": On September 29,2010 (3 months ago), SBA FINALLY changed the rules to allow business owners to refinance their commercial real estate with the SBA 504 fixed rate loan program. This was a HUGE victory for small business owners. So why is it a "miss"?... because we are STILL WAITING for SBA to publish the rules! This means that lenders cannot process any refinance loans until SBA gets it together!!

Lots of lip service from SBA right now! Lenders and small business owners NEED to utilize this program today!

I believe that SBA will "hold off" on publishing the rules, until the Small Business Jobs Act funds are exhausted. Why? Because then, the business owner will have to pay the FEE to SBA (which is currently being waived)! Does not make sense to lenders or small business owners, but I guess it makes sense to SBA and Congress.

Stay tuned... or better yet... demand Congress and SBA to implement the SBA 504 refinance rules NOW!!