Proposed ICBA SBA Changes

by Scott Ramsey on January 18, 2009

The Independent Community Bankers of America trade group is proposing the following changes to the SBA 7(a) program as a part of the economic stimulus package. If this gets passed it would be a huge shot in the arm for the program and great news to us all.

• Immediately offer a “Super SBA 7(a) loan program” for one year as an economic stimulus to help small business access needed capital.  ICBA’s economic recovery proposals advanced to Congress recommend a streamlined, expedited 7(a) loan program with a 95% guarantee, and lender and borrower fees reduced to half of their current level for small business loans up to $500,000.
• Restore a reasonable SBA budget appropriation of $250 million to $500 million to help offset the steep fees on both 7(a) lenders and borrowers as an incentive to jumpstart SBA lending by new bank participants and to increase the number of SBA loans.
• Boost the SBA budget which has been cut nearly in half in the past six years.
• Reinstate the availability of combination (”piggyback”) financing to help serve small businesses with larger borrowing needs.