SmallBusinessNewz

City National Bank has announced to help encourage small business lending, it will pay 50 percent of the standard loan guarantee fees up to $3,000 for SBA 7(a), 504, and SBAExpress loans.

 Standard loan fees range between 2 percent to 3.75 percent of the guaranteed portion of the loan.

"City National is known for banking entrepreneurs, and this program demonstrates our continuing commitment to small business owners," said Jim Wullschleger, senior vice president and Business Banking manager.

"With SBA loan incentives having expired in May, small businesses remain hamstrung in their efforts to invest in and grow their businesses. And that comes at a time when small businesses -- typically a key employment driver -- have a vital role to play in our economic recovery."

The American Recovery and Reinvestment Act of 2009 authorized the SBA to significantly reduce or eliminate certain loan fees and increase to 90 percent the guarantee on eligible SBA 7(a) and 504 loans. Since the program expired, however, SBA lending has dropped by roughly 70 percent nationwide, and proposed legislation extending the fee incentives has been delayed until Congress reconvenes in mid-September.