Agents and Brokers can Get SBA Loans!

I saw this article and thought it would be of interest to some of my colleagues:

NAR: Agents and brokers can get SBA help

WASHINGTON - Oct. 1, 2009 - The U.S. Small Business Administration (SNA) has clarified its rules, saying that individual real estate practitioners and brokers are eligible for the agency's loans, which many could find helpful during tough economic times.

According to analysts with the National Association of Realtors, brokers may apply for America's Recovery Capital (ARC) loans, Section 7(a) loans, and Section 504 small business loans.

An initiative of the Obama administration's economic stimulus package, the ARC program offers no-interest, no-fee, deferred-payment short-term loans up to $35,000 that can be used to make payments on or replace existing business debt.

Under the 7(a) Guaranty Loan Program, individual practitioners can use money from participating lenders for working capital or debt replacement. Intended for long-term needs, the maximum loan amount is $2 million.

The 504 Loan Program, facilitated through community agencies, is ideal for individual practitioners expanding their business and in need of money to pay for fixed assets.

For more information, visit the Small Business Administration website.

Source: Realtor (10/09) Vol. 42, No. 9, P. 10; Freedman, Robert

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