Landscape Architect Articles

Small Business Administration Seeks to Implement American Recovery and Reinvestment Act02-11-10 | News

Small Business Administration Seeks to Implement American Recovery and Reinvestment Act

Traditionally, lenders, such as banks, that participate in these programs often sell qualifying small business loans on secondary markets to raise funds necessary for additional lending. - Photo Courtesy of Delaware National Bank of Delhi

Due to recent turmoil in U.S. credit markets, many lenders have been reluctant to offer conventional loans?EUR??,,????'?????<

While the Small Business Administration?EUR??,,????'?????<

Under the 7(a) program, SBA traditionally has provided lenders guarantees on up to 85 percent of the value of loans to qualifying small businesses in exchange for fees to help offset the costs of the program.

Under the 504 program, which generally applies to small business real estate and other fixed assets, SBA provides certified development companies with a guarantee on up to 40 percent of the financing of the projects?EUR??,,????'?????<

According to SBA, the dollar volume of 7(a) loans sold as securities on the secondary market dropped from $425.4 million to $85.9 million, or 79.8 percent, from the end of the third quarter of 2008 to the end of the first quarter of 2009. Under the American Recovery and Reinvestment Act, SBA was required to implement eight new authorities to help facilitate small business lending and enhance liquidity in the secondary markets. ?EUR??,,????'?????<