Y2K loans now available for small businesses

Aida Alvarez, administrator of the U.S. Small Business Administration, announced April 30 that Y2K Action Loans are now available for small businesses that need financial assistance to address Y2K.

"Y2K is an issue that every small business must address," Alvarez said. "However, potential repair costs should not be a reason to avoid preparing for the Y2K challenge.

"SBA's new Y2K Action Loan Program allows small firms to obtain the financing they need to become Y2K OK."

Alvarez said this special-purpose lending program was authorized by the Small Business Year 2000 Readiness Act, and signed into law April 2, 1999, by President Clinton.

The Y2K Action Loan Program is part of SBA's guaranteed business loan program, known as the 7(a) program.

Y2K Action Loans are available through Dec. 31, 2000, to enable small businesses to become Y2K compliant.

In addition, after Jan. 1, 2000, SBA will also be able to guarantee loans to small businesses that suffer economic injury as a result of Y2K-related problems.

SBA can guarantee as much as $750,000 of a loan made for Y2K purposes, and if a borrower already has an SBA loan, the total amount of SBA's combined guarantees may go as high as $1 million. Y2K Action Loans have a variety of other special features that make them especially attractive to both lenders and borrowers.

The Y2K Action Loan Program:

?Utilizes current 7(a) policies and procedures, except as noted below[[In-content Ad]]