U.S. Small Business Administration

The Supplemental Terrorist Activity Relief Loan 
Program

Loans may be used for any business purpose

For businesses adversely affected by the events of Sept. 11, 2001

With a lower lender annual fee

A special, limited-time SBA 7(a) business loan program  


STAR -

 has $4.5 billion available to assist small businesses.

 has an annual lender fee of only 25 basis points for the entire 
repayment period.

 has a maximum loan amount of $2 million.

 provides a maximum SBA guaranty of $1 million.


STAR is a unique, temporary addition to the SBA's 7(a) Loan 
Guaranty Program. It provides greater access to loans nationwide 
for small businesses affected by the terrorist activities
of September 11, 2001, but not eligible to obtain loans under the 
SBA's disaster assistance program. STAR loans may be used for any 
business purpose. They follow all regular 7(a) loan program 
requirements. All the lender must do is include in its file a 
rationale for its determination that the business was adversely 
affected. Through legislation enacted in January 2002, the program 
has authority to provide such loan funds through January 10, 2003, 
or
until the $4.5 billion funds available under the program are 
expended, whichever comes first. 

Benefits to Lenders
 The lender's on-going fee is cut in half. STAR's reduced annual 
fee is 25 basis points on the outstanding SBA-guaranteed share of 
a STAR loan, rather than the usual annual fee of 50 basis points 
for other 7(a) loans. This fee reduction is for the life of the 
loan.

 STAR loans can be processed using SBA lender options including 
the regular 7(a) loan program, the Preferred Lenders Program, the 
Certified Lenders Program, SBALowDoc, SBAExpress, or 
CommunityExpress.

Benefits to Small Business
 	Small businesses adversely affected by the  terrorist 
activities of September 11, 2001, that do not qualify for loans 
under the SBA's disaster assistance program may qualify under the 
STAR program.

 	Although the annual lender fee of 25 basis points is not 
charged to the borrower, the SBA expects that lenders will pass on 
a portion of their savings to the borrower through an interest 
rate reduction.

Determination of "Adversely Affected"
A business will be considered to have been adversely affected if 
it has suffered economic harm or disruption of its business 
operations as a direct or indirect result of the terrorist 
attacks. Some examples of economic harm include difficulty in -
 making loan payments on existing debt; 
 paying employees or vendors;
 purchasing materials, supplies or inventory;
 paying rents, mortgages or other operating expenses; or
 securing financing.

The lender is required to determine that the loan is being made to 
a small business adversely affected by the September 11, 2001 
terrorist attacks and to summarize the basis for this
decision in the borrower's loan file.

How To Participate in STAR
STAR, like all the 7(a) loan guaranty programs, provides financing 
to America's small businesses through private-sector lenders. The 
maximum loan size is $2 million. The SBA can guarantee up to 85 
percent of the loan, depending on the loan size and other factors. 
The agency's maximum guaranty under the program is $1 million.
 
For More Information
	SBA offices are located in all 50 states, the District of 
Columbia, Puerto Rico, the U.S. Virgin Islands and Guam. For the 
office nearest you, look under "U.S. Government" in your telephone 
directory, or contact:
	Phone: 1-800-U ASK SBA
	Fax: 202-481-6190
	E-mail: answerdesk@sba.gov
	TDD: 704-344-6640
	Your rights to regulatory fairness: 1-888-REG-FAIR
	Internet:
	SBA Home page: www.sba.gov
	Gopher: www.sba.gov/gopher
	U.S. Business Advisor: www.business.gov

SBA Resource Partners
Inquire at your local SBA office for the location nearest you.
	Business Information Centers (BICs)
	Tribal Business Information Centers (TBICs)
	Service Corps of Retired Executives (SCORE)
	Small Business Development Centers (SBDCs)
	U.S. Export Assistance Centers (USEACs)
	Women's Business Centers (WBCs)

The SBA - America`s Small Business Resource
Did you know that in fiscal 2001 the SBA -
	backed more than $16.5 billion in financing to America's 
small businesses?
	approved more than 50,000 small business loans totaling 
almost $12.2 billion?
	invested $4.5 billion in small businesses through its 
venture-capital program?
	provided more than 48,000 loans totaling more than $1 billion 
to disaster victims
	for residential, personal-property and business loans?
	gave management and technical assistance to an estimated 1.3 
million entrepreneurs through its grant programs and resource 
partners?
	responded to almost a quarter million
telephone and e-mail inquiries at the SBA Answer Desk?

Did you know that America's 25 million small businesses -
	employ more than 58 percent of the private work force?
	generate more than 51 percent of the nation's gross domestic 
product?
	are the principal source of new jobs?




All of the SBA's programs and services are provided to the public 
on a nondiscriminatory basis.