When the Recovery Act made it possible for credit unions and other lenders to take advantage of a 90% guarantee from the SBA, as of April, small business owners received their share of $23 billion.

But the clock is ticking with the raised guarantee set to expire by December. Kent Moon, president/CEO of Member Business Lending LLC, has been an advocate of SBA lending because the agency’s loans, particularly the 7(a) program, have the ability to move into the secondary market and can carry a potential loss rate of zero and offer high return on assets. A former SBA district director in Utah, he remembered when the agency had a 90% guarantee in place about 15 years ago.

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