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Temporary Elimination of Loan Fees Temporary 90 Percent Guarantees Expanded Microloans

Temporary Elimination of Loan Fees Temporary 90 Percent Guarantees Expanded Microloans Surety Bond Program Expansion America’s Recovery Capital (ARC) Stabilization Loans. Secondary Market Liquidity for Section 7(a) loans Refinancing for Section 504 loans

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Temporary Elimination of Loan Fees Temporary 90 Percent Guarantees Expanded Microloans

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  1. Temporary Elimination of Loan Fees Temporary 90 Percent Guarantees Expanded Microloans Surety Bond Program Expansion America’s Recovery Capital (ARC) Stabilization Loans Secondary Market Liquidity for Section 7(a) loans Refinancing for Section 504 loans Secondary Market for First Mortgages associated with Section 504 loans SBIC Program Expansion Provides entrepreneurs and lenders financial relief from the current economic crisis that will help encourage borrowing and lending to all small businesses, including start-ups. The bill has nine key components pertaining to small business, including:

  2. Fee Eliminations Eliminates upfront borrower fees on most SBA 7(a) loans and on 504 loans. 90% Guarantees Provides lenders the opportunity to request 90% guarantees on 7(a) loans (except for Express loans). Up to $1.666 million exposure.

  3. Microloans • Expands SBA’s Microloan program with additional funding. • Provides loans up to $35,000 paired with technical assistance to start-up, newly established or growing small businesses. • Already available statewide in Iowa through: • Iowa Foundation for Microentrprise and Community Vitality (IFMCV) • Siouxland Economic Development

  4. Surety Bonds • Raises the maximum contract amount that can be covered by an SBA guaranteed surety bond from $2 million to $5 million and under certain circumstances, for contracts amounting to $10 million. • Provides $15 million in additional funds for this program. • Small businesses need surety bonds in order to bid on and obtain many federal and other contracts.

  5. Business Stabilization Loans • Creates a new SBA loan program to provide deferred-payment loans of up to $35,000 to viablesmall businesses undergoing immediate financial hardship that need the money to make payments on an existing, qualifying loan. • Businesses may defer payment for up to six months. • Loans are 100 percent guaranteed by SBA. • Repayment to begin 12 months after loan is fully disbursed.

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