Economic Development Blog

Happy New Year, CoreNet Global!  Corporate real estate executives, service providers and economic developers alike may be interested in a new development that could help finance some qualifying transactions.  New sources of financing are always welcome in today’s market. 

The U.S. Small Business Administration has extended funding for SBA 7(a) and 504 loan fees and a higher gauranty – up to 90% - through February 28th. If you’re trying to close a deal, the SBA may be the way to go for financing. Here’s the announcement and weblinks:

On December 19, 2009, the President signed the Department of Defense Appropriations Act, 2010 (P. L. 111-118). This legislation provides an additional $125 million to support approximately $4.5 billion in new 7(a) and 504 loans under Sections 501 and 502 of the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”). Specifically, these funds are available for the payment of certain 7(a) and 504 loan fees and a higher SBA guaranty for certain 7(a) loans. (For more detailed information on Sections 501 and 502 of the Recovery Act, see 74 FR 27196 (June 8, 2009) and 74 FR 27199 (June 8, 2009) and SBA Policy Notices 5000-1097, Implementation of Section 501 of the Recovery Act – Fee Elimination Provisions and 5000-1098, Implementation of Section 502 of the Recovery Act – Up to a 90 Percent Guaranty on 7(a) Loans. Both policy notices may be found at http://www.sba.gov/aboutsba/sbaprograms/elending/notices/BANK_FY_09_NOTICES.html.)
This Notice explains how SBA will administer the new funds.

Mr. Chris Manheim, CEcD