The SBA announced Tuesday it is preparing to transition back to loans with lower guarantees and higher fees as American Recovery and Reinvestment Act funding becomes depleted. The stimulus funds allowed the SBA to raise the guarantee on many loans from 75% to 90% in hopes of making them more attractive to lenders and waiving borrower fees to entice small businesses to seek credit. The SBA is creating a queue in which borrower-lender combinations who want to try for stimulus-subsidized loans can wait for funds that might become available, or they can they can proceed right away with a loan at regular terms.

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