AllBusiness.com

SBA Small Business Loans - Help May Be On the Way

LegacyGetting Started

President Barack Obama is set to release a plan Monday raising the federal guarantee on small-business loans up to 90%.  The plan also will temporarily eliminate many of the loan fees that help pay for the program and cover potential defaults, and will instruct the government to purchase small-business loans bundled and sold on the secondary market.

Some indicate it will not be enough, but it will surely help.  A 90% guarantee means that SBA lenders will only risk 10% of their money on a loan - which sounds like a pretty good deal to me.  Here is the full text of an article explaining more details on the proposed program:

Small Business Loans Criticized
By Jonathan Weisman of The Wall Street Journal

Profile: Ney Grant

Ney is a merger and acquisition advisor, entrepreneur, and executive who has been involved with buying and selling companies for almost 20 years offers advice to help you plan for the sale or purchase of your business. He writes the Buying and Selling a Business blog.