Obama Signs Bill to Extend Funding for SBA Loans
Dec 28th, 2009 @ 6:43 AM by Debbie Dragon
Starting today, small businesses will once again be able to apply for and receive two popular SBA (Small Business Association) loans, the 7 (a) and the 504, with no fees and a higher guarantee rate of 90%. From February through November of this year, this federal funded stimulus package helped thousands of businesses across the country. Last week, to the relief of the SBA and small business owners, Obama signed a bill to extend the funding.
The Small Business Association is an independent federal government agency that helps protect the interest of small businesses. According to the SBA website, their mission is to help Americans start, build and grow businesses. The SBA has played a critical role in helping to strengthen small businesses during this tough economic time period. Funding is of course a top priority.
The initial federal stimulus package gave the SBA $730 million with $375 million allotted to allow lenders to borrow the money with no fees. The program also included a provision to increase the guarantee level from 8o% to 90%. When the federal funds ran out on November 23rd, 1070 small businesses were left in a lurch.
New loan approvals begin this week, allowing small businesses to once again receive these loans with the extra perks. Karen Mills, SBA Administrator says “the extension of these programs through February is important to continuing our path toward recovery and will mean thousands more small business owners have access to the credit they need.” She was also reported as saying that she will continue to work with Congress to meet Obama’s goal of giving small business more access to credit.
Small business loans are critical for the continued effort to recover our stricken economy. Small businesses, when they have the funds they need, can stay afloat and provide jobs that might not otherwise be available.
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.