1st Source Bank Ready to Assist Small Businesses

On March 16, 2009, the US Small Business Administration announced important steps being taken to address challenges facing small business in our marketplace.

The bill provides $730 million to SBA and makes changes to the agency’s lending and investment programs to reach more small businesses that need help. 

Here is summary of what the SBA Loan Enhancement will do:

• Raises the guarantee to up to 90 percent on SBA’s 7(a) loans up to $1.5 million, through calendar year 2009, or until the funds are exhausted. 

• Greatly reduces fees for borrowers on SBA 7(a) loans and for both borrowers and lenders on 504 certified Development Company loans, through calendar year 2009.

What does this mean for Small Business Owners?
This means more capital will be available to small business owners in our market at reduced cost.

These enhancements are temporary and are planned to be available through 2009 or until funds set aside for this program are exhausted.

Here is an example:

Loan amount requested:  $200,000

This is a significant savings of $4,500 to the borrower. 

Don’t Delay.  The SBA Loan Enhancement Program is scheduled to end 12/31/09 or when the funds allocated to cover the fees have been exhausted. Click here for a full application.