The Small Business Administration’s recovery lending program has been extended through May by legislation recently signed by President Obama that will provide $80 million in additional funding.
The recovery-lending program includes a higher guarantee on some SBA-backed loans and small business fee relief. Under the new extension SBA may continue to reduce loan fees in its 7(a) and 504 programs and to provide higher guarantee levels on 7(a) loans through May 2010, or until the funds provided under the bill are exhausted. The SBA estimates the $80 million will support about $2.8 billion in small business lending under the 7(a) and 504 programs.
“Small businesses across the country have been able to secure critical financing as a result of the Recovery Act loan provisions and the continued interim funding we’ve received for the program,” said SBA Administrator Karen Mills. “We also know that small businesses could greatly benefit from the additional tools the President has proposed, including higher SBA loan limits and refinancing for commercial property mortgages, which could help thousands of small businesses avoid potential foreclosure. Small businesses need these improvements to ensure their access to the capital they need to drive economic growth and create jobs in communities all across the country.”
For more information about the SBA’s programs, visit www.sba.gov.
{ 0 comments }
