The American Recovery and Reinvestment Act of 2009, known as the 2009 Stimulus Bill, is important for current and prospective franchise owners. Sections pertaining to the Small Business Association (SBA) are particularly vital. These factors, if approved, will loosen credit and provide investors opportunities to buy franchises.
Here are some highlighted points from the Bill regarding the SBA:
• The Bill can provide funding for direct lending for SBA loan guarantees, providing an infusion of capital
• Raise SBA guarantee to 95% LTV, lowering risks for lenders
• Creation of a Secondary Market Lending Authority, creating additional pools of funding
• Allow, third-party, broker-dealers to buy the SBA guaranteed portion of loans
• Multiple tax relief incentives, including bonus depreciation, net operating loss carry back, Sec.179 expensing, and depreciation of business assets
Click this link to read a related, detailed article on SBA Lending for Small Businesses and Franchises.
For a PDF version of the 2009 Stimulus Bill, as written on January 15, 2009, click here: Stimulus Bill 2009.
