Kenny Leonard

CNN Money reports stimulus money helped revive the government’s small business lending program after the recession threw it into a near freeze. But this quarter, as the bonus funds ran out, the program’s growth again began to stall. In essence lending volume dropped by 75% and dollars lent dropped by nearly 84% compared to the 10 day period prior to the expiration of the above mentioned provisions. Read the full article here: http://money.cnn.com/2010/07/02/smallbusiness/small_business_sba_loans/

In similar news, the North Bay Business Journal provides a timeline of the legislation related to the fee waiver and 90% guaranty provisions which originated in the American Recovery and Reinvestment Act (ARRA) passed back in February of 2009. You can also read real-life examples of borrowers who have suffered as a result of Congress not sending a clear message to the marketplace on whether these provisions will be extended or not. Read the full article here: http://www.northbaybusinessjournal.com/22828/waiting-game-as-sba-program-lapses/?tc=ar

At USFC we have numerous customers who are in similar predicaments and are gambling on the hope that Congress will extend these provisions through the end of the year. We are actively having open conversations with our customers on their specific situations. If your SBA lender hasn’t approached you yet, I would suggest you go to your lender and ask to discuss your situation. Each situation is different and depending on the circumstances of each customer will determine whether it is advisable to wait for the reinstatement of the fee waiver or not. I will say that as time continues to pass I become less and less optimistic about the reinstatement coming to fruition.

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