Obama’s Changes To The Small Business Administration
Whether you’re starting up a new business or expanding an existing one, a Small Business Administration (SBA) loan from DNB First may be the answer to your financing needs. A refinanced SBA loan may also increase a business owner’s ability to invest elsewhere. Both you and your business (if it is currently operating) must have a good credit standing when you make your application. Through small business contracting, the federal government acts as a catalyst for small business growth, innovation, and supports the national economic security of the nation.
Upside: The SBA guarantee gives banks some comfort room to approve loans or allow borrowers to repay loans over a longer period of time. A HUBZone (Historically Underutilized Business Zone) is a designated area within urban and rural communities that has been given preferential contract award consideration in an effort to stimulate economic development.
A small business may have more than one SBA loan, but the SBA’s share cannot exceed $2 million. SBA 7A Program loans, unlike the SBA 504, are more dynamic loans and usually are for smaller amounts. Small business is the undisputed engine of job growth and these programs get them the funds they need to operate and expand their business.
SBA loans are used heavily by banks of all sizes to finance the purchase or construction of business owner-occupied real estate (i.e. real property purchased for commerce). Although The Small Business Administration has created streamlined approaches to loan applications, conventional SBA guarantee procedures and protocols pose a significant documentation and administrative challenge for most borrowers.
Sixty years later, the landscape of the nation has changed substantially, but SBA’s mission and its commitment to the interests of America’s small business remain the same. Repayment: SBA and the bank expect a loan to be paid out of the profits of the business.