Businesses and loan providers awaiting new SBA program

It can take a very long time to take a bill and turn it into law. Once that law is created, however, turning it into a policy can take even longer. A Small Business Administration loan program, however, is taking an extraordinarily long time. 25 percent of the time for the money of the program to be handed out has already expired. Some companies are already applying, even though they do not know if they will qualify. These refinancing rules might help people need fewer payday advances.

Program for refinancing with Small Business Administration

Congress passed a new Small Business Administration refinancing program at the end of 2010. The program was meant to last two years. The program would support the refinancing of business property debt. Smaller businesses are facing balloon payments on the relatively short-term loans on their companies. Refinancing will help businesses substantially. Many of them are struggling with the huge payments that are for mortgages. The program has a 24 month time limit.

Waiting for new rules on refinancing

The Small Business Administration refinancing program has already started. Six months have already been used up. Rules for the program have not been written by the SBA yet though. It is very important get the rules and regulations out there. Loans cannot be offered until after this. The 2 years for the program is starting to be cut down even though rules have not been written yet. Writing the rules will leave only 16 months left. This is supposed to be for distributing and backing all the loans made. Getting the regulations right in the Small Business Administration is something businesses are glad is happening. Still, the timeline is a bit frustrating.

Business anxious to get them

Companies have already begun applying for the refinancing program even though the SBA is not quite ready for it. Everywhere from Baltimore, Md., to Bay Area, California, businesses are turning in applications. These “conditional” applications can’t be approved until the SBA writes regulations for who may or may not qualify for these loans. After the loans are written, these applications will be the first processed.

Citations

Knox News

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