SBA Stimulus Funding Receives Its Third Extension
Apr 5th, 2010 @ 4:43 AM by Debbie Dragon
Last week President Obama signed a bill that will extend an SBA stimulus program through the end of April for business loans. This is the third extension to the program which ups the guarantee on certain small business loans to 90% and reduces and/or eliminates loan fees for small business borrowers. This extension included another $40 million dollars and is expected to help fund another $1.4 billion in small business loans.
SBA administrator Karen Mills said, “Thousands of small businesses across the country have taken advantage of these Recovery loan enhancements to get the capital they need during these tough economic times. The increased guarantee and reduced fees on SBA loans helped put more than $23 billion into the hands of small business owners and brought more than 1,100 lenders back to SBA loan programs. As a result, average weekly loan approvals by SBA have climbed by 86 percent compared to the weekly average before passage of the Recovery Act. These programs have been successful in helping jump-start our economy, which is why we will continue to work with Congress on a longer extension of the increased guarantee and reduced fees.”
She went on to say, “Additionally, we continue to encourage Congress to act on other proposals the President has put forward, including higher SBA loan limits and refinancing for commercial property mortgages to help thousands of small businesses avoid potential foreclosure. Small businesses need the changes the President has called for to ensure that they have the tools to drive economic growth and create jobs in communities all across the country.”
While the extension is good news for small business owners, many are frustrated that the extension is only for one additional month. The recent month to month extensions are tough on business owners who know they will need funding sometime thins year, but not necessarily right now. While further extensions are anticipated, so far they are not guaranteed. Business owners are left to decide whether they should apply for loans earlier than needed or wait, hoping the program will be there when they are ready for it.
While both the Senate and congress have each passes legislation to extend the SBA stimulus funding, neither have signed the same bill. In order for the extension to be long term, like through the end of the year, both the House and the Senate will need to pass the same bill.
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.