American Recovery and Reinvestment Act

Document Sample
American Recovery and Reinvestment Act Powered By Docstoc
					2009 American Recovery &
    Reinvestment Act

      SBA Update
     Nationwide effort to:
              •create jobs
       • transform our economy

PLAN is to grow our economy :
     • by jumpstarting job creation
           •re-starting lending
    •investing in small businesses.

      The Recovery Act:
     comprehensive package of
              •tax breaks,
        • financial assistance
     •and market enhancements
              $730 million
          The SBA’s provision in the Bill
 To Increase access to capital for small business
•$375 million:
   •temporary fee reductions
   •increased SBA guarantee up to 90%
•$255 million ARC Stabilization Loans
   • New SBA loan program to help small
   businesses meet existing debt payments
•$30 million to expanding Micro loan program
   • enough to fund up to $50 million in new

1. Temporary Elimination of Loan Fees

2. INCREASE SBA Guarantees to 90%

3. 7(a) Secondary Market Liquidity

4. ARC Stabilization Loans

5. Expanded Microloans

6. Surety Bond Program Expansion

7. Create a Secondary Market for
    504 First Mortgages

8. Expanded 504 Refinancing Project

9. SBIC Program Expansion
            Fee Reductions
•  Eliminates borrower fees on SBA’s
   7(a) long term loans as well as both
   borrower and lender fees on the 504
• Fee elimination does not apply to
   loans with a maturity of less than 12
• Fees paid since February 17, 2009
   will be refunded by SBA. Expected
   date is after May 1, 2009.
   Lenders must reimburse fees paid
      by borrowers on eligible loans.
           Maximum Guaranties
•    90% guarantee on most SBA loans
    – SBAExpress in not included
•   Loans greater than $1,666,666
    will only have a $1,500,000
•   These program improvements
    are only expected to last until the
    end of the year.
            Maximum Guaranties
             Up to 90% Guaranty
    Loan Program      Max. loan Max. guarantee $

                  FULL 90% Guaranty
•   Lender Advantage $ 350,000        $   315,000
•   Community Express $ 250,000       $   225,000
•   Patriot Express     $ 500,000     $   450,000
•   Export Express      $ 250,000     $   225,000
•   Gulf Opportunity    $ 150,000     $   135,000

        90% Maximum Guaranty up to :
• Standard 7(a)   $ 2,000,000  $ 1,500,000
• CLP             $ 2,000,000  $ 1,500,000
• PLP             $ 2,000,000  $ 1,500,000
  7(a) Secondary Market Liquidity

The Recovery Act allows SBA to
   reinvigorate the secondary
     markets for SBA loans.
 – Increase bank profitability
 – Encourage banks to make more
   small business loans
 – Increase greater access to credit
   for small business
          ARC Stabilization Loans
    Brand New SBA Program to give small
 businesses some temporary financial relief to
 keep their doors open and get their cash flow
        back on track create new jobs.
Loans up to $35,000
  – Viable small businesses that need help
      making payments on an existing,
      qualifying loan for up to six months.
  SBA loans made before Feb. 17 not eligible
  – Repayment does not begin until 12
      months after the loan is fully disbursed.
•100% guaranteed by the SBA
        Expanded Microloans

   Increased funding to the
SBA-backed MicroLoan Program
•Micro-Loans can be up to $35,000
•Enough funding from SBA to generate
 up to$50 million in new SBA-MicroLoans
       For a more information and
       a list of micro lenders go to
 Look for The MicroLoan Program and
 Click on the nonprofit intermediaries link
     “The Recovery Act” (cont.)
• 6. Surety Bond Program Expansion
 Increasing Surety Bond Limits will help small businesses
 compete for the billions of dollars
• 7. Secondary Market for 504
 SBA to establish a process for the private sector to apply
 for federal guaranty on pools of 1st lien 504 loans.

• 8. Expanded 504 Refinancing Project
 to restructure and refinance existing loans into SBA-
 backed 504 loans.

• 9. SBIC Program Expansion
 SBA working on regulations that they will required
 SBICs to invest 25 % of their financing dollars in
 “smaller” enterprises

             HOW TO APPLY?
  SBA Guaranteed Loans are BANK LOANS
Apply Directly to a participating SBA LENDER
                  To find a lender go to
        Click on the “financing” link
    And look for: Preferred, SBAExpress,…....Lenders

              To see who the active SBA lenders are:
    scroll to near the bottom of the finance page and look for
   Loan Volume by Lender:      FY 2009 YTD through Feb. 28;
            HOW TO APPLY?
     Community Express Loan Program

              To find a lender go to
        Click on the “financing” link
And look for: The CommunityExpress Loan Program
                And click on the
   technical and management assistance link
Contracting Opportunities
             SBA UPDATES

•   Change in GC Area office location
•   E-Verify
•   GAO decisions
•   eSRS
•   Rothe Decision
•   Recovery Act – Blanket Waivers
•   HUBZone & 8(a) Program Updates
•   Small Business program parity
•   Processing of 8(a) Offers

Thank you!

Shared By: