For companies seeking a federally guaranteed Small Business Administration (SBA) loan that doesn’t carry origination fees, the clock is ticking. Following the signing of a jobs bill this month, a program of providing guarantees to 90% of the loan and waiving fees is back in place — but only until the end of March. Starting April 1, the guaranteed portion reverts to 75%-85% and loan guarantee fees will be charged.
But there is still hope for a longer extension. The SBA is currently working with the Obama Administration and U.S. Congress in hopes of expanding what the program offers and extending the current stimulus package through yearend. SBA Administrator Karen Mills is seeking to have the extension through the end of the year included in a bill expected to be passed the week of March 22, assuming the healthcare reform measure is passed the prior Sunday. Small business owners and lenders are keeping their fingers crossed.