The U.S. Small Business Administration has eliminated or revised several requirements for its 7(a) and 504 loan programs.

According to the agency, the changes include, but are not limited to:

• Elimination of the personal resource test which benefits borrowers by adding flexibility in the management of their allocation of personal resources to the small business;
• Elimination of the nine-month rule for 504 eligible project expenses which allows businesses a longer timeframe in to organize and initiate their small business project;
• Revised 504 loan program collateral requirements to allow third party lenders to take collateral in addition to project collateral under certain conditions; and
• Enhanced certified development company corporate governance requirements to ensure more board accountability and to reduce risks to the SBA portfolio.

Ann Marie Mehlum, SBA associate administrator for the Office of Capital Access, said the program enhancements will expand program eligibility and improve access to capital for small businesses.

The full text of the final improvements is available on the SBA's website.