Thursday, October 27, 2005

Disasters Reveal Weaknesses in SBA Loan Programs - 21 Oct 2005 - Oct-21-2005 - The Small Business Administration (SBA) released figures on its post-9/11 disaster lending program showing that $245 million of the total $1.2 billion lent is currently in default, representing a 20.4 percent default rate. More than 10,000 companies approved for SBA direct loans received a two-year grace period, between 2001 and 2003, to start making payments and now these defaulted loans are coming to light according to the Associated Press. Another SBA loan program, the Supplemental Terrorist Activity Relief program experienced a 5 percent default rate on $3.7 billion lent.

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