CATEGORIES

Categorized | Breaking News

President Obama proposes increase in SBA loan limits

President Barack Obama is proposing that the Small Business Administration (SBA) do more to help smallsbalogosmall businesses overcome the challenges of the sagging economy.

Among the action items the President wants to occur are:

• Improving access to credit for small businesses by providing lower-cost capital to community banks that submit a plan to increase small business lending;

• Raising lending limits on SBA’s 7(a) and 504 programs from $2 million to $5 million and up to $5.5 million for manufacturing companies under the 50-4 program;

• Raising lending limits on the microloan program from $35,000 to $50,000.

A copy of the President’s remarks and a fact sheet on the announcement can be found at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_obama_evnt_remrks09.pdf

A fact sheet on the proposal can be found at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_new_effort_credit_sb.pdf

Responding to the President’s announcement, National Small Business Association (NSBA, www.nsba.biz) President Todd McCracken registered his support of the administration’s actions, but urged further action.

“The most critical component for small-business owners as they make their way out of a recession is finding the resources to enable them to grow,” stated McCracken. “The initiatives and reforms announced today by the administration will be very helpful to many small businesses, and I applaud their efforts. However, more can and must be done.”


Leave a Reply