SBA aims to increase loan access

The U.S. Small Business Administration recently proposed new regulations that would allow borrowers and lenders better access to loans backed by the agency. The changes would make the loan application process easier while also increasing agency oversight of the program and limiting unnecessary or redundant paperwork for those seeking SBA financing. 

SBA loans play an important role for companies seeking startup funding or general project finance to grow their firms. When loans from other outlets aren't approved, many entrepreneurs rely on the SBA to help. The proposed changes could streamline the process and make it easier for business owners to apply for and receive the funding they seek.

Major proposed alterations 
How will entrepreneurs find they have increased access to SBA-backed loans? There are several proposed changes, the first of which would get rid of the personal resource test. Previously, borrowers were forced to jump through hoops to obtain 7(a) and 504 loans - new rules would eliminate the current processes that to determine the amount of collateral required.

Another proposition will change the role of affiliation, allowing companies that currently do not qualify as small businesses because of their partnerships with other corporations to finally obtain SBA financing. This initiative could also limit the amount of paperwork owners much complete in order to be considered for such a loan.

The SBA's new rules would also strike the nine-month rule for 504 loan programs from the books. Businesses are currently banned from including expenses incurred more than nine months ago before a loan application - overturning this rule would allow companies to mention other large expenditures.

One of the other changes the SBA wants to make is changing its focus on Certified Development Company corporate governance mandates. The SBA aims to increase executive accountability and increase oversight in this area to better manage the program.

"Streamlining and simplifying has been a key focus of out agency over the last few years," said Karen Mills, SBA administrator. "The changes are the latest steps to reduce paperwork burden, with our eye on the larger goal of expanding access to capital and giving entrepreneurs and small-business owners the financial resources to grow and create jobs. Specifically, these proposed regulations will provide greater access to capital through our two largest loan programs, while also reducing risk to taxpayer dollars."

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

On April 19, 2016, San Francisco became the first major U.S. city to mandate...

Financial institutions operate at the heart of our economic system and as such, are hyper-aware of market indicators...

As millennials graduate college and move into hip neighborhoods in expensive...

According to CB Insights, the gaming industry has moved through a variety of...

In this modern economy focused on lightening-fast, immediate services, it comes...

Solar energy installation in the United States hit some major milestones in 2015...

A new report from The Tauri Group has declared 2015 a...

Many experts believe that 2016 will be the end of the unicorn startup. Unicorns...

It all started back in 2000 with the objective to capitalize on the explosive growth in technology and provide a...

Managing the working capital of a business tends to be a balancing act that requires a deft touch in order for the...

Recent News

04/28/16
San Jose, CA – April 28, 2016 - Bridge Bank and Trinity Capital Investment, a...
04/01/16
SOUTH SAN FRANCISCO, Calif., April 01, 2016 -- Sunesis Pharmaceuticals, Inc. (Nasdaq...
03/23/16
View the 2015 Western Alliance Annual Report
03/22/16
Following a Record-Breaking Year of Growth, Leading Outsourcing Company Partners...
02/17/16
Durham, NC – Feb 17, 2016 – Bridge Bank today announced the recent hiring...
02/10/16
CARLSBAD, CALIF. -- February 10, 2016 -- Colorescience today announced the...
02/09/16
Los Angeles – February 9, 2016 - Bridge Bank announced today that it has provided...
02/04/16
PHOENIX (Feb. 4, 2016) – Forbes’ assessment of the 100 largest U.S. banks weighed...
01/29/16
San Diego, CA – January 28, 2016 – Bridge Bank’s Life Sciences Group (LSG) today...
11/20/15
MINNETONKA, Minn., November 17, 2015 - Zyga Technology, Inc., a medical device...

Twitter

Featured Insights

Featured Insight

Financial institutions operate at the heart of our economic system and as such, are hyper-aware of market indicators...

Featured Insight

It all started back in 2000 with the objective to capitalize on the explosive growth in technology and provide a...

Featured Insight

Managing the working capital of a business tends to be a balancing act that requires a deft touch in order for the...

Recent News

On April 19, 2016, San Francisco became the first major U.S. city to mandate...

As millennials graduate college and move into hip neighborhoods in expensive...

According to CB Insights, the gaming industry has moved through a variety of...

Twitter