FAQs - Small Business Jobs and Credit Act of 2010

Temporary elimination of fees for the 504 loan program in place until 12/31/2010 or until $505 million appropriation for loan subsidy & loan modification costs is exhausted.

• SBA will no longer require a bank participation fee (currently .5% of the bank's permanent mortgage)

• The CDC loan origination processing fee of 1.5% formerly paid by the borrower will now be paid by SBA.

 

FAQs - Stimulus Act Changes

 

Job Creation Ratio Change

The job creation requirement has been changed to one job per $65,000 of SBA loan funds received.

Debt Refinance permitted under limited circumstances:

• The new loan involves business expansion
• Collateralized by fixed assets
• Existing debt incurred for benefit of small business
• Proceeds used to acquire land, to construct or expand building or to purchase equipment
• Borrower is current on all payments of existing debt for one year
• New financing will provide better terms or interest rate
• New financing will be used only for refinancing existing debt, or for costs related to project being financed.

Energy Efficiency Public Policy Goals

Projects that meet one of the following new energy goals are eligible for SBA 504 loans for between $2 - 4 million without needing to create or retain jobs:

Reduction of energy consumption by at least 10% (Qualifies for $4 million)

Increased use of sustainable designs that reduce the use of greenhouse gas and non-renewable resources and minimize harmful environmental impact. (Qualifies for $2 million)

Install equipment and/or upgrades that will process renewable energy sources. (Qualifies for $4 million)

For more information please go directly to the SBA’s website: www.sba.gov