This content has been marked as final. Show 2 replies
Technically the SBA doesn't ever make loans. Lenders make the loans, which are guaranteed by the SBA. But to answer your question, SBA lending is very restricted right now but not completely dead. The reason SBA loans are hard to come by is that many banks sell the guaranteed portion of the loans to investors who have avoided purchasing these loans for the last few months.
The SBA updated some of their criteria several months ago but are still guaranteeing loans. As a previous poster said, the SBA does not make loans, they guarantee them.
They are still anxious to back loans but some lending institutions have pulled back - other have stepped in/up to fill the void. There are actually several banks who have recently increased their SBA loans trying to get market share.
I am finalizing a deal where the buyer got an SBA loan (he had several loan offers to choose from). It was north of $800,000 with very little assets - primarily a cash flow loan.
Most people who say they SBA is not lending are generally not SBA approved lenders and/or trying to push you towards another type of loan.
I hope this helps.
FYI - I am not a lender or a loan broker, I am a business broker and I refer my clients to several good loan brokers across the country.