There has been a lot going on in the SBA world recently. https://www.sba.gov/article/2023/05/11/biden-harris-administration-announces-new-development-improvements-loan-program.
- SBA plans to streamline eligibility determination for SBA-backed loans in-house through new technology, starting August 1, 2023.
- SBA will add new fraud reviews on all loans in the 7(a) and 504 Loan Programs prior to approval, starting August 1, 2023, using advanced data analytics, third-party data checks, and artificial intelligence tools.
- SBA published new simplified guidelines for lenders, cutting red tape and clarifying affiliation standards to ease the burden on small business owners and lenders.
- SBA will accept new lender applications in the Small Business Lending Company (SBLC) program beginning June 1 until July 31 and name up to three new SBLCs.
Additional, simplified lender guidelines will be posted in the coming days, including on lender participation, servicing, and liquidation.
One of the most significant changes is that the SBA will be increasing the maximum loan amount that it can guarantee. The current maximum loan amount is $5 million, but the SBA is proposing to increase that amount to $10 million. This will make it easier for small businesses to obtain financing for larger projects, such as buying a new building or expanding their operations.
The SBA is also proposing to make it easier for small businesses to obtain loans with shorter terms. The current maximum term for an SBA-guaranteed loan is 10 years, but the SBA is proposing to reduce that term to 7 years. This will make it easier for small businesses to repay their loans and stay in business.
Finally, the SBA is proposing to make it easier for lenders to approve loans for small businesses. The SBA is proposing to reduce the amount of documentation that lenders are required to collect from borrowers. This will make it faster and easier for lenders to process loans and get money to small businesses.
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