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 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
Secondary market liquidity for SBA 7a Loans
4. More cash out on SBA loans