If you want a Small Business Administration loan, you better act fast -- in a couple of months, the agency will run out of the $375 million in economic stimulus funds that made the program more attractive to lenders.
The American Recovery and Reinvestment Act enabled the SBA to increase its guarantee on 7(a) business loans to 90 percent, up from its usual 75 percent to 85 percent. The stimulus bill also allowed the SBA to reduce or eliminate fees on 7(a) loans and its 504 loans, which are primarily used for real estate.
SBA loan surge seen as incentives near end
