SBA loan program helps providers afford changes
The federal government may have some help for smaller physician practices that might be less prepared for millennium bug problems.
Last April, President Clinton signed into law legislation that requires the Small Business Administration (SBA) to provide loan guarantees of up to $150,000 for Y2K-related equipment and software repairs, plus disruptions in normal business operations caused by such things as a breakdown in billing and accounts receivable functions.
To qualify for SBA’s Y2K Action Loans program, health care providers must gross less than $5 million in annual receipts. The federal government will guarantee loans from commercial lenders to qualified small business providers, for which initial principal repayments can be postponed for as long as one year.
SBA will guarantee up to 90% of a Y2K loan of $100,000 or less and up to 85% on Y2K loans of over $100,000. If the application is processed through SBA Express, the maximum guarantee remains 50%.
For more information, contact your banker or local SBA office. If you have a specific question about the program, you can e-mail Greg Diercks at [email protected]. Or call the SBA Answer Desk at (800) U-ASK-SBA.
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