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Log In / Register | Sep 24, 2017

SBA Loans Start To Trickle

CNNMoney reports that the first of an emergency loan program was released. Authorized in February by Congress, the funds are part of America’s Recovery Capital (ARC). After a long drought, lenders last week approved 72 SBA-backed loans worth $2.4 million, interest-free.

The New York Times reports that the spigot has also opened on Wednesday for the underrated 504 loan program for property, building or equipment purchases.

“It’s the least expensive capital that a small business can get out there,” says Christopher Hurn, president of Mercantile Capital Corporation, a conventional, for-profit 504 lender. “There’s no 20-year fixed money in the commercial lending space.” Moreover, the borrower need down only put 10 percent, in contrast to, say, 30 percent in a conventional deal.

And on Friday, Coleman Publishing reported, “In just two year's time, the U.S. Small Business Administration's Patriot Express Pilot Loan Initiative has supported more than $315 million in loans to more than 3,750 veterans and their spouses who are using the SBA-guaranteed funds to establish and expand their small businesses. As a result of the American Recovery and Reinvestment Act, which raised loan guarantees to 90 percent, and eliminated fees temporarily, the number of Patriot Express loans increased to record levels in April and May of 2009.”

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email don@bluemaumau.org.