With the American Recovery and Reinvestment Act measures that have been boosting Small Business Administration (SBA) loan programs slated to conclude by the end of the month, the SBA announced Tuesday that it was “finalizing plans for an orderly transition” back to loans with higher fees and lower guarantees.
The stimulus provisions raised the guarantee on many loans in the SBA’s main program, the 7(a), to 90 percent from 75 percent, currently available to loans funded before Feb. 28. They also eliminated borrower fees for both 7(a) and 504 loans through September, provided money is still available.
