Important Updates Regarding Stimulus Funds Through the US SBA

Changes through The American Recovery and Reinvestment Act of 2009 Make SBA Loans A Great Deal For Businesses!

Over the next year, the American Recovery and Reinvestment Act will have a significant impact on small businesses and on the credit crunch, providing tax incentives and financing opportunities that will help them create jobs.

SBA 504 Loan Program Cuts Fees For 2009!

For eligible loans approved through the Agency’s section 504 Development Company Program on or after 2/17/09, SBA will temporarily eliminate two program fees: Third Party Participation Fees (1/2 of 1 percent of the banks portion of the financing), and CDC Processing Fees (1˝ percent of the SBA portion of the financing). This fee reduction will remain in effect until December 31, 2009, or until the fund dedicated to this purpose is exhausted.

Under the American Recovery and Reinvestment Act of 2009, the SBA amends the minimum number of jobs that need to be created or retained for new 504 loan applications from 1 job per $50,000 guaranteed by the SBA to 1 job per $65,000 guaranteed by the SBA on or after February 17, 2009.

New Energy Public Policy Goals for the 504 Loan Program Help Businesses Meet Efficiency and Sustainability Goals!

In recognition of the need to provide funding for alternative energy production and energy efficiency projects, the SBA is allowing for a new $4,000,000 maximum debenture loan amount for certain 504 Projects including energy efficiency projects using/producing Biomass, Hydropower, Geothermal, Solar, Wind, or Ocean Thermal (wave & tidal action) production methods.

The SBA has increased its maximum debenture loan amount to $2,000,000 for projects that meet the three new energy related public policy goals:

• Reduce energy usage by 10%
• Sustainable Design (LEED Standards, US Green Building Council)
• Renewable Energy Production

For more information, please contact Frank Brisbois, LCP’s Vice President of Commercial Lending at (847) 247-0137 or at fbrisbois@lakecountypartners.com.