SBA announces new policies for two signature loan programs
The newest loan program updates will increase small businesses’ ability to access funding to start and grow through a broader network of lenders with streamlined lender procedures.
At the beginning of August, the U.S. Small Business Administration (SBA) began implementing additional policies aimed at expanding small business access to capital by modernizing SBA’s signature 7(a) and 504 Loan Programs.
The newest loan program updates build on the agency’s previous announcements that address long-standing persistent capital access gaps for rural, veteran, women, and minority-owned businesses. Specifically, they will increase small businesses’ ability to access funding to start and grow through a broader network of lenders with streamlined lender procedures.
The new, simplified guidelines for lenders are part of three updated Standard Operating Procedures (SOP), including updated origination policies and procedures, lender participation requirements, and 7(a) loan servicing and liquidation requirements. For example, SBA is providing additional flexibility in credit criteria for loans under $500,000 to support SBA loans in reaching more credit-worthy small businesses.
To learn more, read the SBA news release here.
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