There have been a lot of media reports lately about the SBA and its lending programs.  Two stimulus packages and a new plan by President Obama’s Administration to increase lending to small business have all happened in the last 18 months.

With all the changes it can get very confusing and hard to keep up to date.   

I’ll do my best to give an overview of what’s happening and available for the small business owner.  First, if you want to obtain a SBA loan there are programs that don’t require mountains of paperwork.  If you are looking for loan sizes greater than $50,000 you will be subject to paperwork.  However, if you apply for the community express or micro loan the amount of paperwork isn’t as daunting. 

The SBA 7(a) has several programs including the community express and micro loan.  These programs are easier for small businesses to apply and qualify for.  Even if you are a start-up you may still have a chance at obtaining one of these loans.  You still need a good personal credit score to get approved, most of the time better than a 680.

The current status of the SBA stimulus programs:

·         Increase the 7(a) loan limit from $2 million to $5 million

·         Increase the 7(a) loan guaranty to a maximum of $4.5 million (90%)

·         Increase the SBA 405 loan limit from $1.5 million to $5.5 million

·         Allow the 405 loan program to refinance short-term commercial real estate loans

·         Extend stimulus one to 90% 7(a) guaranty and waive borrower fees through December 2010

·         Increase the loan limit on microloans from $35,000 to $50,000

·         Allow 7(a) loans to be sold to the secondary market in $500,000 increments

The Obama administration’s small business plan calls for $30 billion to be taken from the $787 billion TARP program and infused in the SBA loan programs.  The intent is to increase the lending to small business.

With all the changes and additional provisions my hope is that banks will want to lend more.  If the government is backing 90% of the 7(a) loans now I can’t see why banks would be afraid of lending these types of programs.  Especially when not too long ago they were offering ridiculous mortgages at 100% of the value of the home while prices were dropping.

If you have any experiences in obtaining SBA loans let us know in the comments section below and provide feedback on any lenders or programs you applied for.  We would love to share your stories.

David Gass
Founder, Business Credit Services, Inc. &
Earn.com Expert Advisor

The stimulus plan created for small businesses the America’s Recovery Capital or ARC loan program. With $255 million of funds, it is geared to help businesses who have an existing loan with their loan payments.

1. The business seeking an ARC loan must have outstanding business debt.

The ARC loan program was designed to help “viable” as defined, small businesses who are suffering “immediate financial hardship” also defined. In order to be considered viable, the business must show that at least one of the last two years the company was profitable. It further requires that the outstanding loan(s) from a credit institution may not have any payments more than 60 days past due.

2. The ARC l

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Search Engine Optimization – Does It Really Work?

Search engine optimization is the hottest marketing tool going at the moment. When a website climbs the Google rankings, it can be a very exhilarating experience watching your sales and customer activity increase at the same time.

Implementing a successful inbound link building campaign is regarded as the most legitimate fundamental SEO strategy technique. Whilst there are many types of link building strategies one can undertake, it is wise to target inbound links that are relevant to a particular websites theme. A

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This is from Steve Akers’ recent presentation, Estate Planning in Light of One-Year ‘Repeal’ of Estate and GST Tax in 2010:

“the Administration proposes to dramatically change the rules regarding valuation discounts (emphasis added). If there is an estate and gift tax reform package adopted next year, it could include that provision.

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That’s the poster from the not so good 1979 movie, The Shape of Things To Come. You kinda get the picture from the tagline Beyond the earth… Beyond the moon… Beyond your wildest imagination!

The movie was an adaptation of  the 1933 science fiction novel, The Shape of Things To Come, by H.G. Wells which speculates on future events from 1933 until the year 2106.

My own prognostications for the future are not nearly as expansive. But rather limited to the world of 401(k) for 2010. Here’s a link to my January 2010 column in Employee Benefit News, The Shape of Things To Come for 401(k) Plans. 

This month our theme across our blogs is “Planning/Starting Your Business”. To kick that off here on Grow Smart Business, we have a guest contributor, Richard Greenberg of “State of the Startup” to give some great advice on starting up.

So you’ve decided to start a new business? Congratulations! Let’s be sure you start on the right track in your endeavor.

First, we will assume you already have your idea, you product, service or profession. And moreover, let’s assume you already have sufficient capital (money) to create your business, and last long enough to pay your personal iving expenses and the costs to run your business until profitable. If you are si

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