The U.S. Small Business Administration made significant changes in qualification for SBA 504 loans.
The changes include elimination of “the personal resource test” and “the nine-month rule”. These modifications mean businesses will have an easier time qualifying for SBA loans, according to a recent statement by TMC Financing.
“By eliminating the nine-month rule for expenditures, businesses that have previous expenditures for building improvements more than nine months from the time of the loan can apply them towards their down payment,” said Ann Santiago, senior vice president for TMC Financing in Las Vegas. She added that the elimination of the personal resource test also removed an obstacle that previously could restrict some businesses owners from obtaining SBA 504 loans.