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From: Lance (Oil and Lube Business, Financing)
Date: 10 Jan 2004
Time: 01:40:29
Notice to our preferred SBA lender on the stoppage of loan guarantees. Here's the notice: "Effective immediately and until further notice, the U. S. Small Business Administration (SBA) will not approve requests for loan guarantees under Section 7(a). SBA has encountered unprecedented demand for the 7(a) loan program. Due to this spike in demand, SBA is forced to take necessary steps to manage the program to the resources available. Applications that have not been processed will be returned to the lender if SBA has possession of the original loan application. If the application was faxed to a processing center, SBA will cancel the application, but will not send the application back to the lender. We are currently working with Congress and expect to resolve this issue and resume the 7(a) loan program shortly. We regret any inconvenience this delay may cause the small business customer or the lender." In the past we have seen the SBA run out of money for loan funding guarantees. I suspect this is the issue again. Most Lenders will be using a Conditional Approval letter in place of a commitment letter during this time. The letter may express that at this time there is no guarantee funds available. Meanwhile we strongly encourage you to contact your U.S House Representative and your two U.S. Senators. You can find the name and phone number of your Congressperson at the following web site. http://dir.yahoo.com/Government/U_S__Government/Legislative_Branch/Senate/Senators/By_State/ and http://www.house.gov/house/MemberWWW.html I wonder if this is worth it since the SBA is so screwed up anyway? Many business groups are asking members by mass email spamming to Call the offices of your U.S. Senators. Tell them how this funding issue has impacted your business, and ask for a legislative fix for SBA’s current funding shortfall. Also ask them to call the offices of Senators Olympia Snowe (R-ME) and John Kerry (D-MA), the Chair and Ranking Member of the Small Business Committee that oversees the SBA; as well as the following members of the Budget Committee: Senators Don Nickles (R-OK) Budget Committee Chair, Judd Gregg (R-NH) Member, and Kent Conrad (D-ND) the Ranking Member to ask for this legislative fix--NOW. And they say to also; Call the office of your House Representative.. Tell them how this funding issue has impacted your business, and ask for a legislative fix for SBA’s current funding shortfall. Also ask them to call the offices of Small Business Committee Chair and Ranking Member Donald Manzullo (R-IL) and Nydia Velazquez (D-NY). If your Representative is Republican, have them call Phil Eskeland in Rep. Manzullo's office at 202-225-5676. If they are a Democrat, have them call Michael Day in Rep. Velazquez' office at 202-225-2361. Lastly ask them to contact Frank Wolf (R-VA) who is a senior member of the House Appropriation Committee. Does this seem like it will help America buy SPAMMING representatives? Hard to say. Maybe the loan guarantee thing is not the worlds best way to do this? As we learn more we will update you.
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