Small Business Finance News
Funds Could Spur More Than $18 Billion In SBA Lending
Written by Jenna Weiner
The U.S. Senate Committee on Small Business has requested funds be allocated for SBA Recovery Act lending programs.
There could soon be good news for entrepreneurs who are looking for loans to expand their businesses. U.S. Senate Committee on Small Business chair Mary Landrieu has requested funds be extended to SBA Recovery Act lending programs.
Funds included in the Recovery Act for small business lending ran out as of November 23. There are more than 700 businesses on the waiting list for loans from the SBA totaling more than $315 million.
"Experience has shown that SBA Recovery Act funding is successful: it actually does go out to the small businesses it is intended to help," Senator Landrieu said. This is why she believes it is "critical" to extend the Recovery Act funding for the currently exhausted SBA loans.
The request includes $140 million for increased 7(a) loan guarantees, $283 million for the elimination of borrower fees on 7(a) loans, and $56 million for the elimination of borrower and lender fees.
"If Congress acts on this request, we can clear the waiting and support up to $18.5 billion in SBA backed loans," she says. Twelve senators have signed Landreiu's letter of request.
These funds could spur small business growth and the economy as the increased lending is expected to create jobs; the Small Business Administration reports that SMBs represent more than 99 percent of all employer firms.
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