Federal Government Writes Off SBA Loans
Many Houston businesses were relieved by the federal government move to write off the SBA loans given to them during the 9/11 tragedy. Almost $7.2 million was given out in SBA loans in the form of disaster loans to businesses affected by the tragedy.
According to the data from the Small Business Administration, 45 small businesses from the area took the low interest SBA loans from the federally declared disaster. The total amount of these SBA loans came to $35.3 million and now the government has written off 39% of the amount. The rules of the SBA prevent it from declaring the defaulters names but the businesses have paid off almost $1.5 million of the SBA loans while the rest is still left.
The SBA made these loans at a 4% interest rate immediately after the attacks to the businesses which were affected. They look for assurance that the loans can be paid off but they write off loans if the amount is deemed uncollectible.