More Businesses Now Qualify For SBA Loans

Standard businesses will now be able to qualify based on net worth (not to exceed $8.5 million) and average net income (after federal income taxes for the preceding two completed fiscal years not to exceed $3 million). This will open up many financing opportunities for many small businesses and free up capital. Some businesses who were just out of reach because of their net worth or net income can now benefit from SBA loans. Many of these businesses should also make note that the SBA will look at the average net income, so companies may still qualify if their net income was high in 2007, but dropped drastically in 2008 due to the economy.

The SBA has also opened up these loans to include businesses who did not originally meet the SBA standards. For a list of these businesses, please visit the SBA website.

These loans are available for purchases, refinances, and even cash-out refinances. You will need to contact a bank or broker to get specific details on each of these scenarios. If cash flow is tight or you just need working capital to purchase more inventory, changes have been made so that more businesses can focus on creating more jobs and investing in small businesses again. This country was founded with an entrepreneurial spirit that we should try to keep intact.

Some other changes that have been made and that every small business should consider include:

1. Elimination of loan fees
2. 90 Percent guarantees
3. Secondary market liquidity for SBA 7a Loans
4. More cash out on SBA loans