• Smaller Loans Now Easier To Obtain From The SBA
  
• NASE Actively Involved In The Bush Transition

Smaller Loans Now Easier To Obtain From The SBA
Changes in the Small Business Administration (SBA) loan programs, which were authorized by the 106th Congress before adjournment in December, make it easier for businesses to obtain smaller loans. 

The most significant changes were to the 7(a) program, which is the largest loan program administered by the SBA. The 7(a) program is designed so that a small business borrower, who has had trouble obtaining loans elsewhere, can receive a federally guaranteed loan from a commercial lender. The new rules raise the amount of a loan under $150,000 that the SBA will guarantee to 85 percent. The result is that it will now be easier for lenders to make smaller loans for under $150,000.

The SBA Microloan program has also been improved. Now, lenders in the program can make loans up to a maximum of $35,000, a $10,000 increase over the old limit. Moreover, the program been expanded into more areas of the country, with the maximum number of lending partners raised from 200 to 300. Finally, those small businesses that receive microloans can receive funding from other sources up to a combined limit of $105,000. The previous combined limit was $75,000. These changes will mean a microloan program that is more accessible and useful for NASE Members.

To find out more about SBA loan programs visit the SBA web site at http://www.sba.gov/financing/indexloans.html,  or call your local SBA regional office to set up a personal appointment with an SBA official.

NASE Actively Involved In The Bush Transition
NASE Vice President, Ginny Beauchamp, has been asked by the incoming Bush administration to play an active role in the SBA transition. The NASE is one of only two national small business trade associations that have been asked to be a part of the SBA transition team. The Bush administration is particularly interested in what NASE Members think about the SBA and its programs, and how the SBA can be more focused on the needs of the smallest of small businesses and the self-employed. The NASE has also provided the incoming administration with an analysis of how the SBA and the SBA Office of Advocacy can be a stronger voice for small business within the federal government.