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the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
the sba_lender's_advantage
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the sba_lender's_advantage

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  • Quick Reference Matrix Fact Sheet
  • Transcript

    • 1. The SBA Lender’s Advantage Guaranteed Lending Programs Colorado Springs SBA Loan Program Overview 4/27/2010 FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 2. Updates on SBA Programs
      • The 2009 American Recovery & Reinvestment Act
      • Program Overviews
        • 7 (a) Loan Program
        • ARC
        • 504
        • Small Business Administration Express
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 3. Changes in SBA
      • Seeking for an increase on the cap on 7(a), 504, and microloans
      • Larger support for job creation
      • Looking to continue extending Small Business Administration’s successful recovery act programs
      • Increase in the 2010 and 2011 budget
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 4.
      • Upfront Borrower Guarantee Fees temporarily eliminated
        • All 7(a) loans
          • Exceptions - Loans of 12 months or less and ARRA Prohibited Uses
        • 504 loans, applies to:
          • 3 rd party participation fees
          • CDC processing fees
        • Specific ARRA Prohibited Uses, but if otherwise eligible, may still submit under regular processes & fee scale
      • Up to 90% Guaranty, temporarily
        • Effective Dates: subject to funding availability
        • All 7(a) and Pilot Loan Programs (Except SBA Express)
        • Specific Prohibited Uses, but if otherwise eligible, may still submit under regular processes and guaranty %
      • ARRA Prohibited Uses
        • States or local governments not eligible
        • No casinos, gambling establishments, aquariums, zoos, golf courses or swimming pools
      • ARC Business Stabilization Loans
      • Refinancing under 504 – permanent revision
      • Dealer Floor Plan Financing Pilot Initiative
      • Secondary Market Thaw
      • Surety Bonds - Increased from $2m to $5m. Up to $10m in specific cases
      • SBA Website for ARRA Info: www.sba.gov/recovery/
      2009 ARRA Incentives FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 5. SBA’s ARRA Incentives Temporary Loan Program Changes
      • SBA 7(a) Guaranteed Loan Program – Standard, CLP or PLP
        • $2 million max
        • No Borrower Fee
        • up to 90% guarantee
      • Small/Rural Lender’s Advantage Initiative
        • $350,000 max
        • No Borrower Fee
        • up to 90% guarantee
      • SBA Express
        • $350,000 max
        • No Borrower Fee
        • 50% guarantee (NO CHANGE)
      • Patriot Express – for Vet/Military transition
        • $500,000 max
        • No Borrower Fee
        • up to 90% guarantee for specific borrowers
      • Community Express – T.A requirement
        • $250,000 max
        • No Borrower Fee
        • up to 90% guarantee with Technical Assistance
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
      • Export Express –for exporters
        • $250,000 max
        • No Borrower Fee
        • up to 90% guarantee
      • Export Working Capital – for exporters
        • $2 million max
        • No Borrower Fee
        • 90% guarantee (NO CHANGE)
      • 504 Loan Program
        • Up to $2m routinely, or $4m if manufacturer
        • No Borrower Fee
        • No 3 rd Party Lender Fee
        • 1 st Mortgage Loan Refinance
      • ARC Loans
        • $35,000/borrower
        • No Borrower Fee
        • No Interest to Borrower
        • 100% guarantee
      • Dealer Floor Plan Financing Pilot
        • $500,000-$2mil
        • 60-75% Guarantee
        • Limited Pilot Initiative
      NEW NEW NEW
    • 6. ARRA Funding Extension
      • Additional $80million approved to continue increased guarantee % and reduced fee incentives
          • Will support more than $20 billion in small business lending
          • Doesn’t impact ARC or Microloans – original ARRA funds still available
        • Apps formerly in SBA’s Recovery Loan Queue
          • Original ARRA funding for 7(a) and 504 incentives was exhausted 3/31/2010
          • Recovery Act Queue was created to await availability of further funding
          • Those who chose to wait in queue were funded first with new ARRA Funding extension
          • No retroactive guarantee % increases or fee relief for Non-Recovery loans funded during transition period
          • Non-Recovery Act loans can’t be cancelled and resubmitted to receive incentives
        • New Loan Approvals
          • Applications to be considered beginning 5/1/2010
          • Higher guarantee percentage requests authorized through 5/30/2010
          • Fee relief authorized through the sooner of funding exhaustion or 9/30/2010
      • Recovery Queue system will be reinstated for any future transition periods
        • www.sba.gov/recoveryq
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 7. 7(a) Loan Program Specifics
      • Maximum loan size is $2 million
      • Maximum SBA exposure is $1.5 million
      • Guaranty % ( limited time):
        • 90% for loans of $1,666,666 or less
        • Anything above will receive a % calculated by formula
          • $1,500,000/Loan Amount = Guarantee %, rounded to the 2 nd decimal
        • If Prohibited Use under ARRA or funds are exhausted, then defaults to regular program %s
          • 85% for loans $150,000 or less
          • 75% for loans $150,001 or more
      • Guaranty fee ( limited time):
        • No Upfront Borrower Guaranty Fee (limited time), Except for
          • Short term loans of 12 mos or less, then
            • 0.25 point fee
          • If Prohibited Use under ARRA or funds are exhausted, then defaults to regular program %
            • 2% of guaranteed portion on loans of $150K or less (lender retains basis points)
            • 3% of guaranteed portion on loans over $150,001 - $700K
            • 3.5% of total guaranteed portion for $700,001 - $1million
            • PLUS an additional .25% on any guaranteed portion over $1 million
      • Can be used for any combination of eligible uses of proceeds
        • EXCEPT RLOCs - Use CAPLINES or Express Programs
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 8. Uses of Loan Proceeds
      • SBA loan may be used for most business purposes , including:
      • Real Property
      • Machinery and Equipment
      • Inventory, Furniture and Fixtures
      • Leasehold Improvements
      • Debt Restructuring
      • Working Capital
      • RLOCS (Express and CAPLINES ONLY)
      • Miscellaneous - Refer to SOP 50-10-5(b) for Clarifications
        • Franchises
        • Changes of Ownership
        • Intangibles
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
      • SBA proceeds may not be used for:
      • Floorplan financing - Except thru DFP Pilot Program (began 7/1/09)
      • Distribution to owners or principals
      • Payment of delinquent trust accounts
      • Acquisition of less than 100% of a business
      • Other Program-specific restrictions
    • 9. 7a Loan Program
      • Term of the loan should equal the useful life of the proceeds
      • Limited prepayment penalty
      • No job generation requirement
      • All business collateral available is required
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 10. ARC
      • A deferred-payment loan up to 18 months
      • Maximum Loan of $35,000
      • No fees
      • 100% loan gurarantee to the lender
      • Interest to be paid to the lender
      • Up to a term of 5 years
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 11. 504
      • Long term fixed rate financing
      • Proceeds are generally used for Real Estate purchases and construction
      • Loan amounts up to $2,000,000
      • Must generally create or retain one job for every $50,000 of debenture proceeds
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 12. SBA Express Program
      • Loans Up to $350,000
      • 50% Guaranty
      • Regular 7(a) maturity guidelines
      • Mainly Regular 7(a) eligibility & uses of proceeds guidelines
      • May be Revolving Lines of Credit (7 year maximum term)
      • Over loan life, RLOCs may be increased up to the $350k max (no 20% of total loan limit)
      • Loans under $25,000 (or up to your bank policy) may be unsecured
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 13. Micro Loan Program
      • Provides small loans up to $50,000
      • Applications are submitted to a micro loan lender (Colorado Enterprise Fund & Accion)
      • Interest rates vary depending on lender
      • Maximum term allowed is six years
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 14. Eligibility – All Programs
      • To be eligible (not qualified) for SBA assistance, businesses must:
      • Demonstrate need
      • Be size eligible
      • Be eligible as to business type , and
      • The uses of loan proceeds must be eligible
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co
    • 15. Contact
      • Bob Martin
      • Lender Relations Specialist
      • Colorado District Office
      • 303-844-2607
      • Email robert.martin@sba.gov
      FY 2010 Colorado District Office – 303-844-2607 - www.sba.gov/co

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