A New lending program through the Small business administration opens on Friday. The rules were just released, and applications are now being accepted. The program was intended, by Congress, to help businesses who have buildings facing foreclosure. There are very heavy restrictions on the program that could prevent companies that actually need the help from getting it. Post resource – New SBA lending program to start Feb. 28 with heavy restrictions by MoneyBlogNewz.
Rules announced for New Small Business Administration lending
This year, in Jan, businesses have been waiting for lending program rules. This can only come from the Small business administration. The program was passed by Congress last year, and the SBA has been working on implementing the rules since then. On Thursday, Feb. 24, the rules were officially announced. Underwater mortgages can be covered by the loans that businesses with mortgages can get. These could be due in the next 24 months. About 10 percent of the loan amount is going to be something the business has to have in cash or equity to be able to put down.
Small Business Administration program limitations
Help from the SBA lending program is intended to give companies a helping hand. Really, this ought to stop foreclosures in the business. Several businesses can be cut out of the deal with the rules that have been set. The majority is concerned that these limitations are too much. Any companies that don't have the down payment cash accessible, that can't pay the additional 1 percent fee or that already have short-term SBA mortgage loans are not allowed to get the loans. The Small Business Administration claims that these restrictions are to ensure that companies that are truly on the edge of shutting down, however viable, get the most help first.
Starting a small business loan
Since payday loans are too small for businesses to get any help from generally, it can be hard to get a small company to stay open. Whether or not the economy is doing well, businesses might just fail. The chance of success in a business is the first thing to determine. About $15 billion is being loaned to smaller businesses from the government. It needs to get paid back. Hopefully, businesses that need help and will work can get the help with the Small Business Administration program.
Articles cited
LA Times
articles.latimes.com/2011/feb/18/business/la-fi-sba-loans-20110218
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