SBA Tries to Revamp the Loan Process
Entrepreneurs looking to fund their startups or procure loans for their businesses through the United States Small Business Administration (SBA) have had to wrangle with extensive approval processes that have frustrated many owners.
However, in light of feedback, the SBA has proposed regulations that would effectively cut down the necessary paperwork for loans and make the application process easier to complete.
“Streamlining and simplifying has been a key focus of our agency over the last few years,” outgoing SBA Administrator Karen Mills said. “The changes are the latest steps to reduce paperwork burden, with our eye on the larger goal of expanding access to capital and giving entrepreneurs and small business owners the financial resources to grow and create jobs.”
The regulations would overhaul the SBA’s two largest programs, the 7(a) and 504 loans. Specifically, the regulations would end the requirement that borrowers obtain a maximum level of personal finance resources, eliminate the nine-month rule for the 504 loan program and ease affiliation requirements so more enterprises would qualify as small businesses.
While the SBA is making an effort to reduce the bureaucratic red tape associated with its loan programs, some entrepreneurs may still find the revamped processes are slow and unreasonable. In that case, National Funding stands at the ready to help owners find the small business loan they need through a simple, one page application process.