On May 31, the Small Business Administration (SBA) will run out of money for the breaks that revitalized its lending programs. The Economic Stimulus Bill that passed in February 2009 increased the government guarantee on the SBA’s flagship 7(a) loans to 90% (up from the typical 75%) and reduced fees … [Read more...] about 5.31.10: SBA 7(a) Stimulus Money Runs Out Again
Archives for May 2010
Karen McDonnell, Business Program Specialist for the N.Y. office of the USDA, reports that although the USDA B&I loan guarantee program has officially run out of stimulus money, an allocation of stimulus money will be available for applications received during the week of June 7, 2010. Ms. … [Read more...] about 5.26.10: But the USDA B&I Program Has Stimulus Money — for One Week Only!
Commercial mortgage-backed securities special servicers turned to creative workout strategies when volume reached $81.7 billion at the end of the first quarter, according to Fitch Ratings, New York. Nearly 5,000 loans in special servicing rapidly increased workload and staff. "Special servicers are … [Read more...] about 5.21.10: CMBS Special Servicers Have Their Hands Full
Mortgage brokers should focus on key loan programs if they want to make money in the current credit environment. “I am regularly asked by mortgage brokers, borrowers and bankers to provide guidance on what type of loans can get closed in the current tight credit environment,” said Michael D. Sneden, … [Read more...] about 5.14.10: What’s Hot in Commercial Lending
Secondary Market Access (SMA) -- a consortium of CDCs and financial companies -- has begun operations to purchase SBA-504 first mortgages for sale into the secondary market. SBA-504 first mortgage lenders are now able to sell 85% participation interests of individual loans to pool originators … [Read more...] about 5.12.10: SBA 504 Lenders Now Able to Sell Participation Interests
Many lenders struggle with reporting their loans to SBA via the Fiscal Transfer Agent, Colson Services. Often, lenders with dedicated SBA departments can handle the responsibilities without much difficulty, but lenders that are only semi-active in SBA lending are sometimes not up to speed on SBA … [Read more...] about 5.7.10: Watch your Ps and Qs and SBA 1502s