Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Podcast: SBA Official Provides Information on Latest Steps to Increase Small Business Loans

Posted by Hopeton on March 16, 2009

The U.S. Small Business Administration’s Associate Administrator for Capital Access Eric Zarnikow revealed that the U.S. Treasury Department will commit up to $15 billion to help unlock the frozen credit markets by purchasing small business loan securities currently frozen on the secondary market in his interview on the March 16 edition of Economic Perspectives.  By purchasing these securities the SBA expects to jumpstart small business lending.  Zarnikow said the number of SBA loans this fiscal year has declined 50 percent compared to last year.

Eric Zarnikow

Eric Zarnikow

Zarnikow also discussed the benefits small businesses will receive as a result of the American Recovery and Reinvestment Act in the interview.  The Recovery Act contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs that are designed to unlock the credit markets and facilitate the economic recovery of the nation’s small businesses.

Among the key provisions being implemented this week to enhance SBA loans are the following:

  • Temporary elimination of all borrower fees for SBA 7(a) loans and borrower and lender fess for SBA 504 loans until the end calendar year 2009 or until funds are exhausted
  • Temporary increase of 7(a) loan guarantees up to 90 percent until the end calendar year 2009 or until funds are exhausted

Zarnikow will host a web chat on March 19, 12 p.m. – 1 p.m. Central Standard Time to provide small business owners an opportunity to obtain answers to their questions about how the Recovery Act will assist them.  Participants can join the live web chat by going online to www.sba.gov and clicking the “online Business Chat” icon.

To listen to the Economic Perspectives’ interview with Zarnikow, click here.

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