SBA makes more businesses eligible for loans - Business First of Columbus:

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The SBA will adopt an alternate size standardsfor 7(a) loans that will allow businessesa to qualify on net wortnh and average income. The current smalk business standards, which vary by industry, are based on revenued or numberof employees. This made many auto dealersa ineligiblefor 7(a) loans because their annualk revenue had to be less than $29 milliom to qualify as a smalp business. Under the alternate standard, businessese with net worth of $8.5 million or less will be eligibleefor 7(a) loans, as long as their average net incomed after federal income taxes is $3 million or less.
This parallelsz the alternate size standard already available forthe SBA’as 504 loans, which are used to finance real estate or other fixed assets. The temporarh change in the 7(a) size standard will go into effec t next week and will lastuntip Sept. 30, 2010. The SBA made similar temporary changew in response to previouaeconomic emergencies. “This is just one more step we are taking to make sure smallo businesses have access to capital to keep theitr doors open and employees working duringv these tougheconomic times,” said SBA Administrator Karehn Mills.
“We have seen signs that small businesses that are just outside thetraditional 7(a) size standard are beinhg shut out of the conventional lending market. This temporary change will help those businesseds weather these tough times and help move our natiobn closer toeconomic recovery.”