The SBA has increased the amount it will guarantee on loans from 80% to 90%.  Fees have been waived as well.

This guarantee simply means that you, as a business owner, will not get 90% loan to value on your project.  The loan amount the bank decides to give you is guaranteed by the SBA up to 90%.

The bank may still require at least 20% injection (equity) on your part.  The bank will loan on the other 80% of the project or assets.  A restaurant may only get 55% loan to value.  The SBA guarantees 90% of the loan.

In simple terms, assume the project is $100,000.  The SBA guarantees $72,000 of an $80,000 loan on a $100,000 project.

People hear a lot of info on the news about SBA loans.

The bank deals with the SBA, not the borrower. If a banker says to you (as the borrower), “you are getting the run around” from the SBA, (SBDC or other agency), it is really the banker giving the run around.  The banker may not do enough government backed loans to understand that it is he or she is the one that deals with the SBA, USDA, VA, etc.  The bank is the one who gets the package and puts it together.  The borrower deals with the bank.

Even if the SBA decides to back the loan to the bank, the bank has the final decision to fund or not to fund the loan.