Excellent news for small business owners seeking government-backed loans: the eligibility requirements for Small Business Administration loan programs have expanded and are allowing more businesses to enroll. If your business didn’t qualify before, it may now.
Digital Journal reported that the SBA’s two main loan programs– 7(a) and 504— would start seeing eligibility changes soon, and starting on April 21, 2014, these changes went into effect. Some of the changes that have taken place involve less evaluation of how many personal resources business owners are using for their businesses and longer and more flexible timeframes in which businesses can complete the projects that the loans would be allocated for. The changes to these loan programs may also contribute to job creation by fostering more local involvement.
SBA-backed loans can be a great option for funding for small business owners, and the fact that the eligibility requirements are becoming less strict gives evidence to the idea that the economy is recovering. Not too long ago, the SBA reported that borrowing conditions for small businesses are improving, and on March 5, the Associated Press reported that banks were also starting to make more loans to small businesses, a sure sign that things are looking up. We hope the changes the SBA has made are simply the next step in the road to recovery.
A full description of the changes to the eligibility requirements can be viewed here.
Photo credit: lendingmemo, Flickr