SBA's Interim Rules Will Help Small Business Get Funding

Keyword:
Basic Business Plan
SBA Loans

The U.S. Small Business Administration announced two steps this week to improve access to capital for small businesses, one involving choosing the interest rate for SBA guaranteed loans, and the other allowing for flexibility in restructuring SBA loans for sale in the secondary market.

Both of these changes are critical to getting business funding flowing again.

“The challenge small businesses face today is not the cost of capital, it is access to capital,” said SBA Acting Administrator Sandy K. Baruah. “Interest rates are at historically low levels meaning money is inexpensive, yet lenders aren’t lending and borrowers aren’t borrowing. This interim final rule is an important step to reenergize the lenders to make SBA-backed loans and will help open the gateway of capital for entrepreneurs.”

To learn more about SBA’s guaranteed loan programs visit www.sba.gov.