Friday, February 23, 2007

Two Different Opinions on the Proposed SBA Budget

Over the last few weeks, I have written about the proposed changes in the SBA budget for 2008 which includes not only changes in business loan offerings, but a possible reduction in fees. Forbes Magazine posted "Head to Head: Funding for the SBA" summarizes some of the ongoing bickering and posturing on Capital Hill over the changes and provides a Q&A with new small business committee chairwoman Nydia Velázquez, D-N.Y., and ranking committee member Steve Chabot, R-Ohio.

In response to a question on lowering fees, Chabot responds that "Reducing the cost should provide greater incentive for banks to be a part of the loan programs and assist in economic development. " Just spoke with one of my bank SBA lenders who confirmed that most (if not all) banks simply pass those fees along to the borrower. So lowering of the fees helps the borrowers, but probably isn't an incentive for more banks to be a part of the loan programs.

Need help finding the right SBA lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call.

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