Kerry Committee Gets Approval For SBA Changes
The U.S. Small Business Administration is changing portions of its lending programs in order to make it easier for businesses to borrow money, according to the U.S. Sen. John Kerry's Committee on Small Business and Entrepreneurship.
Kerry said the changes would give small business lenders the discretion to use variable interest rates such as the London Interbank Offered Rate (LIBOR) as an alternative to the Prime rate. The SBA will also now allow loans of various interest rates to be pooled for sale on the secondary market.
The changes are intended to make the lending process easier for borrowers and lenders during in the current difficult economy.
Kerry said the SBA's loans to small businesses are down 53 percent compared to last year. The changes were also pushed by U.S. Sen. Charles Schumer, D-N.Y., a senior member of the Senate Committee on Banking.
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