February 22, 2016
By Bob Coleman
Editor, Main Street Monday
Main Street Monday — FY17 Budget Calls for $27 Billion SBA 7(a) Program
President Obama’s fiscal year 2017 budget proposes increasing the SBA 7(a) loan program from $23 billion to $27 billion.
The 2017 Budget continues upfront fee waivers on 7(a) loans up to $150,000 and SBA Express loans to veterans, as well as provides a 50 percent fee waiver on 7(a) loans up to $500,000 to veteran-owned businesses.
The budget also provides $7.5 billion in loan guarantees for capital expenses through the SBA 504 loan program.
Additionally, the 504 loan refi program should be up and running by October 1, 2016.
Both programs will operate on a zero subsidy basis.
SBA 7(a) and 504 loan losses will be offset by borrower and lender fees.
No taxpayer dollars will be needed to fund either loan program.
This ensures continued bipartisan support of the SBA’s lending program in Congress.
Check out more information here.