Welcome to another episode of SBA Today, with your hosts, Paul Long and Tonya Mazurek.

This week's episode, airing for the week of June 11th, dives into the intricacies of the new SBA working capital program, the implications of the SBA's proposed budget, and the latest on penalties and fees.

Tonya also shares a personal anecdote about learning from different generations that seamlessly ties into broader business insights.

 

Here are the highlights:

• Prohibition on Direct Lending: The House's proposed FY 2025 budget includes a prohibition on SBA direct lending, highlighting the ongoing debate around SBA's role in direct lending.

• New Working Capital Program: The SBA's new pilot program for working capital offers up to $5 million in credit lines with significant guarantees, aiming to be more appealing for both lenders and borrowers.

• Increased Penalties and Fees: Due to inflation, increased penalties and fees are coming into place for non-compliance, underscoring the need for vigilance and timely reporting by SBA lenders.

• Spike in New Business Applications: April saw a significant surge in new business applications, marking the highest numbers since 2004 and indicating robust entrepreneurial growth.