#sba #smallbusiness #sba7a

In this video, Ray [an actual SBA 7a Lender] discusses the eight biggest changes to the SBA Seven A loan program. These changes include the removal of minimum equity injection requirements, the introduction of partial change of ownership transactions, the implementation of the "do what you do" philosophy, an overhaul of the SBA approval process, the expansion of the SBA small loan program, the reintroduction of blended terms for real estate projects, the elimination of construction bond requirements, and fee relief for loans under $2 million.

Additionally, Ray highlights a significant change in the affiliation rules that allows businesses to obtain multiple SBA loans if they are not affiliated based on ownership and sector.

In short:
1️⃣ SBA has removed minimum equity injection requirements, except for change of ownership transactions.

2️⃣ Partial change of ownership transactions are now allowed, and sellers no longer need to personally guarantee the loan if they retain less than 20% post-close.

3️⃣ SBA lenders can now use their conventional lending policies to dictate their SBA loan policies.

4️⃣ The SBA approval process has been overhauled, causing delays and dissatisfaction among lenders and borrowers.

5️⃣ The SBA has expanded the small loan program, making it easier for lenders to offer small dollar loans.

6️⃣ Borrowers can now obtain 25-year terms for multiuse projects where real estate represents at least 51% of the loan proceeds.

7️⃣ Funds control can be used instead of requiring construction bonds, reducing costs for small businesses.

8️⃣ Fee relief is offered for loans under $2 million, providing significant savings for borrowers.

CHAPTERS
0:00:00 Introduction to changes in the SBA Seven A loan program
0:02:01 Removal of minimum equity injection requirements
0:02:55 Flexibility in equity injection guidelines for business acquisitions
0:04:46 Introduction of partial change of ownership transactions
0:06:18 SBA lenders can use their own lending policies
0:07:35 Overhaul of the SBA approval process causing delays
0:08:06 Expansion of the SBA small loan program
0:09:07 Reintroduction of 25-year terms for multiuse projects
0:09:42 Ability to use funds control instead of requiring construction bonds
0:10:47 Changes in affiliation rules for multiple SBA loans
0:11:50 $5 million SBA loan for non-affiliated businesses
0:12:15 Changes in SBA approval process
0:12:15 Request for comments on changes