SBA 7(a) Guaranteed Loan Lenders Say 'Thank You' for Program Amendments

See Substantive Changes as Positive Step toward Stimulating Economy

BOSTON, May 4 /PRNewswire/ -- As members of the National Association of
Guaranteed Lenders (NAGGL)gather in Boston for the annual SBA Lenders
Technical Conference (May 5-7th) the organization is sending a "thank you" to
the U.S. Small Business Administration for the recently announced temporary
change to the size standard in order to expand eligibility for these
government guaranteed loans.

According to the SBA, the change goes into effect this week (May 4th) and will
continue through September 30, 2010 allowing perhaps as many as 70,000
additional small businesses (including auto, boat and RV dealerships as well
as auto industry suppliers) to newly qualify for the SBA 7(a) loans.

"We, the banks, thrifts, credit unions and other lenders across America
originating these 7(a) loans, want to be sure that SBA Administrator Mills
knows that this is a very smart move. We hope that the change is made
permanent," says Anthony Wilkinson, NAGGL President and CEO. According to
Wilkinson, in addition to allowing far more small businesses to qualify, the
change will eliminate conflicts existing between the SBA's 7(a) and 504
programs as well as make the approval process more efficient.

With the announced change in the size standard businesses will now be able to
qualify based on net worth (not to exceed $8.5 million) and average net income
(after federal income taxes for the preceding two completed fiscal years not
to exceed $3 million).

Other amendments to the SBA 7(a) loan program were announced by the Obama
Administration in March including an increase to 90 percent of the loan
guarantee and a reduction or elimination of fees for borrowers. The
Administration also announced a $15 billion plan to purchase mortgage-backed
securities to create lender liquidity.

Historically, the 7(a) loan program has been the largest and most often used
long-term lending program for small business in this country. In years past as
much as $15 billion has been loaned through the 7(a) program. But this year
(FY2009), according to SBA data, the program is on pace to loan about half of
that amount. Small business owners reportedly have been reluctant to apply for
credit and many lenders have not had the funds needed to make these loans.

"These are exactly the kinds of changes to the 7(a) loan program both
borrowers and lenders need. Both borrowers and lenders need to begin to
believe, again, in the capacity of the economy to recover. And both borrowers
and lenders need to know that they can afford to borrow and lend the credit
small businesses need so desperately to operate, acquire and expand.

"It is heartening to see substantive changes in the 7(a) program so that
lenders can provide the necessary capital that borrowers - the small
businesses of America -- will need to lead us out of the recession," Wilkinson
said.

For more information or to contact the National Association of Government
Guaranteed Lenders (NAGGL) headquartered in Stillwater, OK. telephone contact
(405)377-4022 or www.naggl.org.

SOURCE National Association of Guaranteed Lenders

Candice Warltier, +1-312-587-3105, cwarltier@sbcglobal.net, for National
Association of Government Guaranteed Lenders