Limited Window for More Generous SBA Loan Terms

President Obama recently signed legislation that extends looser terms for SBA business loans; however, the extension is brief - only until the end of calendar year 2010. Key points:

1) raises the lending cap from $2 million to $5 million;

2) increases the government guarantee from 75% to 90%;

3) Waives fees.

For those prospective buyers who are hoping to utilize SBA financing to fund acquisitions, we strongly encourage you to secure a commitment letter prior to year-end. New legislation will be required in 2011 in order to maintain these more generous lending terms under the SBA program.