News Release - SBA PRESS OFFICE
***********
Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending
Agency plans to restart Recovery loan approvals on March 10***********
Release Date: March 4, 2010
Contact: Hayley Matz (202) 205-6948
Release Number: 10-06
Internet Address: http://www.sba.gov/news***********WASHINGTON – President Barack Obama signed legislation Tuesday extending
until March 28 the U.S. Small Business Administration’s ability to provide small
business loans that are enhanced with special provisions of the American
Recovery and Reinvestment Act (ARRA), including a higher guarantee of SBA-
backed loans and a waiver of loan fees normally paid by borrowers. SBA estimates the additional funding will support about $1.8 billion in small
business lending.
New approvals of eligible loans with the higher guarantee and reduced fees
made possible by the Recovery Act are expected to resume on March 10.
Loan applications from borrowers in SBA’s Recovery Loan Queue will be funded
first, followed by new loan applications.
“These key loan programs have been successful in helping jump-start the
economic recovery for America’s small businesses,” said SBA Administrator
Karen Mills. “The increased guarantee and reduced fees on SBA loans helped
put almost $22 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 87 percent compared to the
weekly average before passage of the Recovery Act.
“We will continue working with the President and with Congress to move
forward with proposals for a longer extension for these important program
enhancements, as well as higher loan limits, refinancing for commercial
property loans and other significant ongoing support for small businesses. Small
businesses need the changes the President has called for to ensure that they
have the tools they need to drive economic growth and create jobs in
communities all across the country.”
As part of the Recovery Act, SBA received $730 million, which included $375
million to increase the SBA guarantee on 7(a) loans to 90 percent and to
waive borrower fees on most 7(a) and 504 loans. The funds for these
programs were exhausted on Nov. 23, and an additional $125 million was
provided in December. Those funds were exhausted in late February. SBA has implemented the Recovery Loan Queue twice before as part of its
temporary transitions back to pre-Recovery Act lending. Eligible small
businesses, in consultation with their lender, could choose to be placed in the
queue for possible approval of a Recovery Act loan if funding became available
from loans canceled for a variety of reasons. Currently there are 652 loan
requests totaling $230 million in the Recovery Loan Queue.
The extension signed by President Obama authorizes the higher guarantee
levels through March 28, 2010, for 7(a) loans. The fee relief is available until
the additional funding is exhausted or the end of the fiscal year on Sept. 30,
whichever comes first. As was the case in November and again in February,
SBA is prepared to transition into a queue system as the funds start to wind
down in order to ensure the maximum simulative effect of the programs and
disbursement of funds.
For non-Recovery Act 7(a) or 504 loans already funded during the transition
period, this extension does not provide a retroactive guarantee or waived
fees. Loans that were funded under non-Recovery Act terms cannot be
canceled and resubmitted to take advantage of the Recovery Act extension
provisions.
This extension does not affect other SBA Recovery Act programs, including the
America’s Recovery Capital (ARC) loan program or the agency’s microloans.
Recovery Act funding still remains available for both of those programs.# # #
***********
Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending
Agency plans to restart Recovery loan approvals on March 10***********
Release Date: March 4, 2010
Contact: Hayley Matz (202) 205-6948
Release Number: 10-06
Internet Address: http://www.sba.gov/news***********WASHINGTON – President Barack Obama signed legislation Tuesday extending
until March 28 the U.S. Small Business Administration’s ability to provide small
business loans that are enhanced with special provisions of the American
Recovery and Reinvestment Act (ARRA), including a higher guarantee of SBA-
backed loans and a waiver of loan fees normally paid by borrowers. SBA estimates the additional funding will support about $1.8 billion in small
business lending.
New approvals of eligible loans with the higher guarantee and reduced fees
made possible by the Recovery Act are expected to resume on March 10.
Loan applications from borrowers in SBA’s Recovery Loan Queue will be funded
first, followed by new loan applications.
“These key loan programs have been successful in helping jump-start the
economic recovery for America’s small businesses,” said SBA Administrator
Karen Mills. “The increased guarantee and reduced fees on SBA loans helped
put almost $22 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 87 percent compared to the
weekly average before passage of the Recovery Act.
“We will continue working with the President and with Congress to move
forward with proposals for a longer extension for these important program
enhancements, as well as higher loan limits, refinancing for commercial
property loans and other significant ongoing support for small businesses. Small
businesses need the changes the President has called for to ensure that they
have the tools they need to drive economic growth and create jobs in
communities all across the country.”
As part of the Recovery Act, SBA received $730 million, which included $375
million to increase the SBA guarantee on 7(a) loans to 90 percent and to
waive borrower fees on most 7(a) and 504 loans. The funds for these
programs were exhausted on Nov. 23, and an additional $125 million was
provided in December. Those funds were exhausted in late February. SBA has implemented the Recovery Loan Queue twice before as part of its
temporary transitions back to pre-Recovery Act lending. Eligible small
businesses, in consultation with their lender, could choose to be placed in the
queue for possible approval of a Recovery Act loan if funding became available
from loans canceled for a variety of reasons. Currently there are 652 loan
requests totaling $230 million in the Recovery Loan Queue.
The extension signed by President Obama authorizes the higher guarantee
levels through March 28, 2010, for 7(a) loans. The fee relief is available until
the additional funding is exhausted or the end of the fiscal year on Sept. 30,
whichever comes first. As was the case in November and again in February,
SBA is prepared to transition into a queue system as the funds start to wind
down in order to ensure the maximum simulative effect of the programs and
disbursement of funds.
For non-Recovery Act 7(a) or 504 loans already funded during the transition
period, this extension does not provide a retroactive guarantee or waived
fees. Loans that were funded under non-Recovery Act terms cannot be
canceled and resubmitted to take advantage of the Recovery Act extension
provisions.
This extension does not affect other SBA Recovery Act programs, including the
America’s Recovery Capital (ARC) loan program or the agency’s microloans.
Recovery Act funding still remains available for both of those programs.# # #
---------------
Lynn M. Miller, LMA, LLC
Business Development & Consultation
*The Professional with a Flair!*
Phone: 718.506.2329
Fax: 718.228.7331
lmallc@vmdirect.com
www.lmallc.com
Lynn M. Miller, LMA, LLC
Business Development & Consultation
*The Professional with a Flair!*
Phone: 718.506.2329
Fax: 718.228.7331
lmallc@vmdirect.com
www.lmallc.com
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