WASHINGTON—The Small Business Administration (SBA) has issued a proposed rule that would make changes to its 7(a) Express and 504 loans.
Many credit unions use the 7(a) loan program to serve small businesses in their communities.
The proposed rule seeks to provide clarity on requirements applicable to Express loans, extend the renewal term for lenders, require certain applicants to inject excess liquid assets into the business reducing the amount of SBA-guaranteed funds needed, and align Express loans' allowable fees with those of all other 7(a) lenders, among other things, NAFCU reported.
Comments on the proposed rule are due to the SBA Nov. 27. NAFCU said it will review the proposal and offer comments.
The SBA today is offering a free webinar on its different loan programs, NAFCU noted.