Section 7(a) Direct & Guaranteed Loan Program

Program Description:	Section 7(a) Direct & Guaranteed Loans
Federal Agency:	Small Business Administration
Agency Website:	http://www.sba.gov/recovery/index.html
National Total:	$636 million ($6 million for direct loans; $630 million for guaranteed loans): $375 million for reimbursements, loan subsidies and loan modifications pursuant to Section 501 of ARRA; $255 million for loan subsidies and modifications pursuant to Section 506 of ARRA
New York State Total:	N/A
Entities Eligible to Apply:	Small businesses

Flow of Funds:	$375 million to allow SBA to reduce or eliminate fees it charges to lenders and borrowers in 7(a) and 504 loan programs (reduces cost on $13.5 billion in loans); allows the SBA to temporarily raise loan guarantee levels to 90% for 7(a) loans, excluding SBA Express loans; temporarily allows SBA to fully guarantee small, short–term "stabilization" loans, not to exceed $35,000, to existing SBA borrowers; appropriates $6 million for new microloans to so–called micro–businesses, typically firms with fewer than 10 employees. The additional funding will leverage as much as $51 million in additional microloans.
Obligation Deadline:	Provisions expire September 1, 2010
Reporting Requirements:	N/A

State Agency:	N/A
State Agency Website:	www.recovery.ny.gov
State Agency Technical Contact:	N/A
Additional Information:	Use this form to request additional information.