The Small Business Administration — with the help of the Obama administration’s Implementing the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) — is stepping up to the plate with help for borrowers, including those with owner-occupied real estate. According to their Web site, the SBA is making available:
— $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA’s guarantee percentage on some loans to 90%.
— $255 million for a new loan program to help small businesses meet existing debt payments
— $30 million for expanding SBA’s microloan program, enough to finance up to $50 million in new lending.
The elimination of fees by itself is a significant benefit to borrowers, but the possibility of going to 90% LTV is huge. Ask your banker for more information or visit sba.gov.
(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Mortgage and he can be reached at brian.andrews@acmla.com.)
