New York SBDC Research Network

From Coleman Report The White House’s FY 2019 proposed budget released [recently] supports $30 billion in SBA 7(a) funding. That is a 10% increase over anticipated $27 billion in loans for FY 2018. Given the Administrator’s newly granted ability to increase 7(a) by 10% if needed at the end of a fiscal year, there should be sufficient 7(a) loan supply to meet 7(a) loan demand. The White House is weighing in on the credit elsewhere rule saying: SBA fills a critical void in the market when economic shocks reduce traditional lending to small businesses and when the private market is unwilling to provide capital to credit-worthy borrowers. However, during prosperous economic times such as these, the Budget proposes that SBA introduce counter-cyclical policies to its business loan guarantee programs that enables it to maintain its operations while ensuring that it is not displacing direct private lending. Through an adjustment of fees across its business loan guarantee programs, SB...

Eligible small business owners now have more options to refinance eligible fixed assets and business expenses through the Small Business Administration (SBA) 504 Refinance Program . SBA Administrator Maria Contreras-Sweet made the program permanent through an Interim Final Rule in The Federal Register released May 26, 2016. This change will help small business owners ease their financial burdens and create incentives for potential expansion and further job creation. In making the announcement, Contreras-Sweet said: “As both a former small business owner and a banker, I know firsthand that access to capital is the single most important factor in the survival and growth of a small business. The 504 loan program with its long term fixed-rate can help refinance debt from adjustable rate loans with significant savings to borrowers. Paying off existing loans with a new loan at a lower cost can help increase cash flow, which can be especially helpful in a resurgent economy. That’s why...