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SBA CALLS ON NEW YORK CITY BANKS TO INCREASE SMALL BUSINESS LENDING

SBA CALLS ON NEW YORK CITY BANKS TO INCREASE SMALL BUSINESS LENDING
 NEW YORK, May 4 /PRNewswire/ -- Michael P. Forbes, SBA Region II administrator of the U.S. Small Business Administration (SBA) today urged New York City lenders to register for a seminar aimed at educating lenders about the agency's guaranteed loan program. The SBA guaranteed loan program enables lenders to me long-term loans to deserving small businesses because the SBA guarantee reduces their level of exposure in the loan.
 The three-hour seminar, hosted by Chemical Bank, will held at 270 Park Ave., 3rd floor, Manhattan, on Wednesday, May 6, between 8 a.m. and noon. Forbes said the seminar will encourage New York City bank and non-bank lenders to utilize the SBA's 7(a) guaranteed loan program which provides up to a 90 percent guarantee and terms up to 25 years.
 There are significant advantages for lenders to participate in the SBA guaranteed loan program. In addition to earning credit on a bank's Community Reinvestment Act statement, SBA loans may also be sold to investors on the secondary market. This feature enables lenders to make additional loans, thus providing a lender with the means to increase market share and to sell other services. Another advantage is that loans guaranteed by the agency can be helpful in extending the statutory or regulatory limits on extensions of credit. In addition, member banks may borrow from the Federal Reserve with certain assets as collateral. SBA guaranteed loans qualify as collateral to the extent of the guaranty.
 "SBA Administrator Patricia Saiki has directed the SBA be in the forefront of the economic recovery through its guaranteed loan program. The SBA loan -- long considered the business person's loan of last resort -- is now the loan of first priority at many banks across the nation," Forbes said.
 New York City banks who have not yet registered may do so by calling 212-264-5877.
 Region II encompasses New York, New Jersey, Puerto Rico and the U.S. Virgin Islands.
 -0- 5/4/92
 /CONTACT: Ben X. Haggerty of the U.S. Small Business Administration, 212-264-5877/ CO: U.S. Small Business Administration ST: New York IN: FIN SU:


CK-TS -- NY032 -- 5926 05/04/92 10:22 EDT
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Publication:PR Newswire
Date:May 4, 1992
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