The SBA has just announced that for 7(a) loan applications that are in the 7(a) Recovery Loan Queue, SBA will approve these loans with a 90 percent guaranty in addition to fee relief as soon as funds become available (expected on or after October 1, 2010).
This will relieve lenders of the need to withdraw loans from the Queue and resubmit them in order to receive the higher guaranty. SBA believes that most, if not all, lenders will prefer the higher guaranty that is now available under the Small Business Jobs Act.
This of course contradicts previous SBA guidance that you could NOT submit a loan into the queue for the higher guaranty.
This increased guaranty and guaranty fee waiver expires on December 31, 2010.
For a copy of the notice, go here- http://www.sba.gov/idc/groups/public/documents/sba_program_office/bank_5000-1173.pdf