When Pres. Obama signed the Omnibus Bill last week, a piece of the bill secured the funding for 2016 for the Small Business Administration (SBA) lending program. The SBA is authorized to lend $34 billion through the 7(a) and the 504 program. This represents an $8 billion increase from 2015; which was the programs most successful year.
The 504 program is for real estate and equipment. The 7(a) loans are covered by the SBA up to 85 percent of the loan. This means that credit unions don’t have to count the SBA guaranteed portion of the loan against the MBL cap of 12.25 percent.
Credit unions represent just a fraction of the SBA lending program. LEVERAGE just rolled out its Business Lending program this month. It helps credit union begin an SBA lending program without having to make the costly investment to get an SBA lending department up and running. LEVERAGE Business Lending will supply all of the training and consulting so the credit union has very little upfront costs. Contact a LEVERAGE Business Development Consultant to learn more.