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The Good News and Bad News About SBA Emergency Small Business Loans

Monday, April 13,2009 08:46 PM

The bad news: 1. You can't use them to pay off an old SBA loan 2. Guidelines are still under review 3. Loans max out at $35,000 4. Only "viable" small businesses will be approved. According to the SBA, viable means "...a small business that has a demonstrated earnings history and proven record for success that may just need a little extra help to get through a short-term downturn..." 5. No one can tell us when the program will be unleashed. The good news: 1. $255 million is approved for this program 2. The loans will come directly from banks but the SBA will offer the banks a 100% guarantee on the loans 3. The SBA will fully subsidize the interest on the loans, making them practically cost free for business owners 4. No payment on the loans will be due for a year, and businesses will have up to 5 years to repay them 5. Private loans made for any legitimate business purpose -- including business credit card debts, bank loans and real-estate loans -- would be eligible for the program. Read the full article for more details at: http://money.cnn.com/2009/03/20/smallbusiness/sba_arc_loans.smb/index.htm?postversion=2009032016