SBA extends incentive period

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Incentives for Small Business Administration loans have been extended until March 28.

The Temporary Extension Act of 2010 provides funds to eliminate or reduce fees on SBA 503 loans and temporarily restores the 90 percent guarantee on SBA 7(a) loans.

Signed by President Obama, the extension authorizes higher guarantee levels. The fee relief is available until the additional funding is exhausted or the end of the fiscal year on Sept. 30, whichever comes first.

The additional funds will support about $1.8 billion in small-business lending, according to the SBA.

Higher guarantees on SBA-backed loans and a waiver of loan fees normally paid by borrowers make it less risky for lenders to make loans.

New approvals of loans with the higher guarantee and reduced fees began on March 10.