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[STK]
[IN] FIN
[SU] SBS EXE LBR
-- WITH PHOTO -- TO BUSINESS, LABOR, AND NATIONAL EDITORS:
SBA Improves Small Businesses Access to 7(a) and 504 Loan Programs;
Enhances Job Creation
WASHINGTON, March 31, 2014 /PRNewswire-USNewswire/ -- U.S. small
businesses will gain improved access to two major
government-guaranteed loan programs once a final rule to that effect
issued by the U.S. Small Business Administration becomes effective
April 21, 2014.
The SBA recently published a Final Rule on the Federal Register that
eliminates or revises several requirements for its two main loan
programs, 7(a) and 504. The rule expands eligibility, makes it easier
for small businesses to secure SBA-backed financing, and encourages
job creation.
"These 504 and 7(a) program enhancements will expand program
eligibility and improve access to capital for small
businesses. Improvements in CDC corporate governance oversight enhance
program integrity and encourages more local involvement," said Ann
Marie Mehlum, SBA Associate Administrator for the Office of Capital
Access.
The changes include, but are not limited to:
-- Elimination of the personal resource test which benefits borrowers
by adding flexibility in the management of their allocation of
personal resources to the small business;
-- Elimination of the nine-month rule for 504 eligible project
expenses which allows businesses a longer timeframe in which to
organize and initiate their small business project;
-- Revised 504 loan program collateral requirements to allow Third
Party Lender to take collateral in addition to Project collateral
under certain conditions; and
-- Enhanced CDC corporate governance requirements to ensure more board
accountability and to reduce risks to the SBA portfolio.
For the full text of the Final Rule as published on the Federal
Register, visit
http://www.sba.gov/sites/default/files/Final%20Rule%20-%20Federal%20Register%202014-06237.pdf
Release Number: 14-07
Contact: David Hall 202-205-6697 Internet Address:
http://www.sba.gov/news Follow us on Twitter , Facebook & Blogs
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SOURCE U.S. Small Business Administration
-0- 03/31/2014
/Photo: http://photos.prnewswire.com/prnh/20110909/DC65875LOGO
/Web Site: http://www.sba.gov
CO: U.S. Small Business Administration
ST: District of Columbia
IN: FIN
SU: SBS EXE LBR
PRN
-- DC94187 --
0000 03/31/2014 14:52:00 EDT http://www.prnewswire.com
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