Tag: sba

SBA Reinstates Lender Fees to Restore Financial Integrity of 7(a) Loan Program | Small Biz Trends

~ knjohn ~ Leave a comment

The U.S. Small Business Administration (SBA) has reinstated lender fees for its 7(a) loan program, reversing a Biden-era policy that the agency said contributed to financial instability and undermined the program’s zero-subsidy requirement. The action was announced Thursday as part of a broader effort to address what the SBA described as “gross financial mismanagement” under the previous administration.

“Since its inception, the SBA’s 7(a) loan program has launched millions of small businesses, driving economic growth and job creation. But the Biden Administration’s actions to undermine the financial integrity of the program now threaten to leave taxpayers on the hook,” said SBA Administrator Kelly Loeffler. “To safeguard taxpayer-backed capital and small business formation, the SBA is taking immediate action to reverse these policies, starting with the restoration of lender fees to protect the future of the program.”

Read More

Phoenix Lender Services Launches to Revolutionize SBA and USDA Lending | Small Business Trends

~ knjohn ~ Leave a comment

Phoenix Lender Services, a subsidiary of Community Bankshares, Inc., has launched with a mission to transform Small Business Administration (SBA) and United States Department of Agriculture lending across the United States. Based in LaGrange, Georgia, the new lender service provider aims to simplify the lending process for small businesses and financial institutions through a combination of extensive expertise and innovative solutions.

Phoenix Lender Services offers end-to-end support for SBA and USDA loans, including underwriting, closing, servicing, and liquidation. The company also provides secondary market sales and exclusive origination services for Community Bank & Trust (CB&T), its sister company.

Read More

SBA Encourages Shoppers to Support Local Businesses on Small Business Saturday with “Gift Big, Shop Local” Campaign | Small Business Trends

~ knjohn ~ Leave a comment

The U.S. Small Business Administration (SBA) announced the kickoff of its Season of Small Business holiday campaign, beginning with the 15th annual Small Business Saturday on November 30, 2024. The event, founded by American Express, encourages consumers to support local small businesses during the holiday season. This year’s theme, “Gift Big, Shop Local,” emphasizes the importance of shopping small and supporting entrepreneurs nationwide.

“Small Business Saturday has become America’s call to action to support the backbone of our economy and heart of our communities – our small businesses,” said SBA Administrator Isabel Casillas Guzman. “America’s incredible entrepreneurs create jobs, drive innovation, and strengthen our communities, shaping the unique character of neighborhoods across America. This year, as we continue to enjoy an unprecedented Small Business Boom, I encourage everyone to Gift Big and Shop Local by supporting local businesses and the millions of hardworking Americans behind them.”

Read More

SBA Exhausts Funds for New Disaster Loans, Urges Continued Applications as Agency Awaits Additional Funding | Small Business Trends

~ knjohn ~ Leave a comment

The U.S. Small Business Administration (SBA) announced today that it has exhausted available funds for its disaster loan program due to the high demand for financial relief following Hurricane Helene.

As a result, the SBA is pausing new loan offers for its low-interest, long-term disaster loans until Congress appropriates additional funding.

However, the SBA is encouraging disaster survivors, including individuals and small businesses, to continue submitting loan applications, with assurances from congressional leaders that more funds will be allocated once Congress reconvenes in November.

Read More

SBA Eases Construction Contracting for Small Businesses Amidst COVID-19 Repercussions | Small Biz Trends

~ knjohn ~ Leave a comment

The U.S. Small Business Administration (SBA) has extended the moratorium on the 8(a) Business Development Bona Fide Place of Business (BFPOB) Requirement through September 30, 2024. Announced by Administrator Isabella Casillas Guzman during her inaugural day of a multi-city Alaska tour, this decision underscores the SBA’s commitment to empowering small businesses in the wake of the COVID-19 pandemic.

Introduced in 2021 as a swift response to the pandemic and the ensuing trend of remote work, the BFPOB Requirement Moratorium is a part of the SBA’s 8(a) Business Development Program. Initially, it was created to alleviate the pressure on participating businesses from the mandate of maintaining a physical presence to be eligible for any 8(a) construction contract. This means that a participating small business aiming for an 8(a) construction contract can now bypass the need for a BFPOB within any geographic boundary.

Read More

SBA Stands Ready to Assist Hawaii Businesses and Residents Affected by the Wildfires | Small Biz Trends

~ knjohn ~ Leave a comment

Low-interest federal disaster loans are now available to Hawaii businesses and residents as a result of President Biden’s major disaster declaration, U.S. Small Business Administration’s Administrator Isabella Casillas Guzman announced.

The declaration covers Maui County as a result of the wildfires that began on Aug. 8.

“SBA’s mission-driven team stands ready to help Hawaii’s small businesses and residents impacted by wildfires,” said Administrator Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”

Read More

SBA Waives Disaster Loan Interest and Payments for First Year | Small Business Trend

~ knjohn ~ Leave a comment

The U.S. Small Business Administration recently announced it will be waiving the interest rate for the first year on new disaster loans by extending the initial payment deferment period automatically to 12 months.

SBA Waives Disaster Loan Interest and Payments for First Year

This means new disaster loan borrowers will now have up to one year from the date of the note to begin making payments, instead of the usual five months.

Interest on such loans will not begin to accrue until 12 months from the date of the initial loan disbursement.

This is great news for borrowers as they will no longer need to pay interest accrued on all disbursed loan funds during this new initial payment deferment period.

Read More

Didn’t Get Your PPP Loan Fully Forgiven? There’s Still Hope. Let the SBA Know | Inc.com

~ knjohn ~ Leave a comment

For business owners who received only partial forgiveness on their Paycheck Protection Program loans, consider this your stay of execution.

On January 27, 2022, the Small Business Administration, the agency in charge of administering the PPP, quietly issued a procedural notice outlining a new review policy for borrowers who got a partial loan forgiveness decision from their lender, or were instructed to apply for less forgiveness than they wanted.

As of January 27, if you want to appeal a partial forgiveness decision you will have 30 days–from receipt of a lender’s post-remittance notification–to tell the lender. The lender must then file for a loan review on behalf of the borrower within five days. The same process applies to borrowers whose lenders prevented them from applying for full forgiveness.

Read More

$100 Billion in SBA Loans and Grants Still Available | Small Business Trends

~ knjohn ~ Leave a comment

With less than three weeks remaining in 2021, you still have the opportunity to get a piece of the $100 billion left in Small Business Administration (SBA) loans and grants. December 31 is the last day applications will be accepted for the COVID-19 Economic Injury Disaster Loan (EIDL) and Targeted EIDL Advance. And the Supplemental Targeted Advance applications must be turned in no later than December 10, 2021.

$100 Billion in SBA Loans and Grants STILL Available for Small Business

One of the benefits of applying for government loans is the great rates. As a small business with less than 500 employees, you can apply for an EIDL loan of up to $2 million. The loan comes with a 3.75% interest rate if you are a for-profit company. And if you are a not-for-profit organization, the rate goes down to 2.75%. What makes it even more attractive is, these are 30-year loans.

Read More

PPP’s Crazy Final Days | Inc.com

~ knjohn ~ Leave a comment

When the Small Business Administration shuttered the Paycheck Protection Program for all lenders other than community financial institutions earlier this month–three weeks before the forgivable loan program’s May 31 end date–it sent shock waves through the system.

Womply, a loan facilitator based in San Francisco, quickly rattled off a report noting that as many as 1.6 million of its small-business customers would be left out. Numerated, the Boston-based digital lending platform for banks, said it had $1.4 billion in outstanding applications from more than 33,000 businesses that had been started but not yet approved by the SBA. Meanwhile, other lenders worked to scuttle their programs and divert borrowers, even as it remained unclear how much money was actually left.

Read More