Real Estate

Here are highlights of SBA Loan Provisions in to H.R. 5297 (Jobs'
Bill):

*Fee Reductions - - - extends the authority for 504 and 7(a) fee
reductions through December 31st, or until $505 million in
appropriations for fee reductions to support them is used.

*90% 7(a) Guarantee- - - extends the 90% guarantee on 7(a) loans
through December 31st.

*Maximum Loan Amounts - - - permanently increases the loan maximum on
504 loans, including public policy loans, to $5 million, except small
manufacturer loans and energy loans are increased to $5.5 million.
Also increases the maximum amount of 7(a) loans to $5 million gross
and $3.75 million net (or guaranteed amount).

*Alternative Size Standard - - - pending SBA establishment of an
alternative applicable to both 504 and 7(a), establishes a standard of
maximum tangible net worth of $15 million and 2-year average net
income after Federal income tax of $5 million, which will apply to
both programs.

*Debt Refinancing - - - establishes a temporary 2-year program of
business debt refinancing through the 504 program independent of the
usually required job creation/preservation goals of one job for
$65,000. This enables 504 to be used for refinancing of qualified
existing debt without business expansion.

*Guarantees of 1st Mortgage Loans - - - extends the sunset on the new
temporary program for partial guarantees of the third party loan of a
504 financing. The program will expire two years after the date the
first pool sale occurs which is currently expected to be September
2010.

*Microloans - - - permanently increases the maximum per small business
borrower to $50,000 and per intermediary to $5 million. Also
authorizes SBA to waive intermediary match requirements during fiscal
years 2011 and 2012.

*Intermediary Lending Pilot - - - establishes a 3-year pilot program
to provide capital to 20 non-profit intermediaries annually to make
loans targeted to start-up, newly established and growing small
business concerns. CDCs should be eligible to participate.

Ed Ferree
ONE CALL LOAN

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