New SBA Business Loans offer Fast Approval, Less Paperwork

The Small Business Administration is rolling out a more user-friendly version of its 7(a) loans to make it easier for smaller and rural banks to offer certain types of business loans

The new loans, offered through the Small/Rural Lender Advantage initiative, rolled out in Florida on Aug. 1. The loan process will involve less paperwork but, unlike the existing Express loan programs, will offer the same guarantee as standard SBA loans.

"Typically, the SBA doesn't have a rural mission, so this program was developed to provide service to underserved markets," said Ed Ramos of the Orlando office of the SBA.

In fact, the program should appeal to small banks that typically make fewer than 10 SBA loans a year, said Ralph Ross, deputy district director for the North Florida District of the SBA, which includes Orange, Lake and Seminole counties.

Source : http://www.bizjournals.com