SBA Loans Liberalized

The Small Business Administration is set to announce that it is raising the federal guarantee on small business loans from 50% and 85% to 90%.  This program is known as section 7(a).  The plan will also temporarily eliminate many of the loan fees.  The federal government will purchase small-business loans bundled and sold on the secondary market.  Borrowers must provide documentation they cannot get loans elsewhere.  Wall Street Journal, page A3, March 16, 2009.  Click here to go the SBA website.