Best Time To Get SBA Loans!

by Scott Ramsey on July 24, 2009

The United States Small Business Administration lending programs are alive and well. The flagship 7(a) program is currently one of the best bargains in the country for small businesses borrowing money.  Right now, program fees are being waived and to entice banks to lend under the program, the guarantee percentage is as high as 90%.

What this means to small businesses; there has never been a better time to borrow. What this means to banks is that there has never been a better time to lend money under this program. Banks that may be unable to lend conventionally due to capital and liquidity issues can make 7(a) loans. The secondary market for selling 7(a) loans has become active again and we have seen premiums lately in the 9% range.

There have also been improvements in the SBA 504 program such as fee waivers and expansion of the program to include refinancing in some cases.

Most of these enhancements are temporary so businesses and banks must act quickly to capitalize on current market conditions.