Credit unions and other lenders have received word that the SBA has reactivated the Recovery Act queue to possibly approve more loans if additional funding becomes available.
The original $375 million provided under the Recovery Act for the SBA loans was exhausted in November. Since then, additional funds have been provided for short-term extensions, and those funds, too, have been exhausted, the SBA said.
Previously approved loans are sometimes later cancelled or never disbursed for a variety of reasons, and the funds committed to those loans can be applied to applications in the queue, according to the SBA. The queue takes this into account and beginning on the transition date will allow eligible small businesses, in consultation with their lenders, to choose to be placed in the queue for possible approval for a Recovery loan if funding once again becomes available.
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"A key piece of [President Obama's agenda] is a longer-term extension of these increased guarantees and reduced fees, and we urge Congress to move quickly to continue these critical programs," SBA Administrator Karen Mills said.
Small business owners and lenders can access the queue at www.sba.gov/recoveryq. They will be able to remove themselves from the queue at any time to be considered for a non-Recovery SBA loan with all applicable fees and, for 7(a) loans, standard guaranty levels.
The authorization for the 90% guarantee on 7(a) loans ends on May 31, but the authorization for fee waivers is in place through September 2010.
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