Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
House considers higher SBA guarantees
WASHINGTON (2/4/09)—The Credit Union National Association (CUNA) is watching developments with a Small Business Administration (SBA) loan guarantee increase plan, which would take some pressure off the credit union member business lending (MBL) cap. Under the economic stimulus plan passed by the House, the SBA would be permitted to guarantee up to 95 % of qualifying small business loans. This could benefit credit unions engaged in SBA 7(a) and 504 lending because the guaranteed portion of such loans do not count towards the credit union 12.25% if assets MBL cap. The bill would also improve the timeframe within which SBA would be required to approve applications for loan guarantees. A credit union or other lender would submit an application to the SBA with a proposed guarantee level and the SBA would be required to approve or deny such application within 5 business days. CUNA’s Phil Drager, however, advises that there is no SBA loan guarantee language so far in the economic stimulus package currently being debated by the Senate. Drager, senior legislative representative, said the Senate bill would reduce fees associated with 7(a) and 504 loans but does not propose to increase the SBA guarantee.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
11 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
12 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
14 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
16 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
16 hours ago