Small Business Finance News

New Law Extends SBA Small Business Loan Programs

Written by Jenna Weiner
Published: 3/30/2010

Recovery lending from the SBA has been extended through April by a new bill.

Legislation signed by the president has extended the ability of the U.S. Small Business Administration to provide enhancements through its two largest small business loan programs.

Entrepreneur Mixed Financial Results

The enhancements, which include fee relief and a higher guarantee on some SBA-backed loans, first became available under the American Recovery and Reinvestment Act.

An estimate from the SBA says that the extension will support about $1.4 billion in lending for small business, news that will likely be welcomed by entrepreneurs.

SBA administrator Karen Mills praised the success of the Recovery loan enhancements so far, but also called for more action.

"We continue to encourage the 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," she said. "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."

Under the extension, the SBA will be able to waive loan fees and provide higher guarantee levels through April 30, 2010, or until funds provided under the bill run out.

Last week, Mary L. Landrieu, chair of the of the U.S. Senate Committee on Small Business and Entrepreneurship, called the extension of such provisions "a good and necessary step" to providing small businesses with the tools they need.

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