Lenders that participate in Small Business Administration (“SBA”) loan programs should be aware that the SBA recently issued an interim final rule to increase monetary based small business size standards. These standards are based on criteria such as receipts, assets, net worth and income. The increase will allow additional businesses to become eligible for SBA loan programs. In other words, the SBA estimates that over 8,400 business that were previously considered “large” by SBA standards will now qualify as “small.” This change is effective July 14, 2014 and may increase opportunities for banks to work with additional borrowers through SBA programs.
For additional information visit the SBA website.