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Two new SBA initiatives announced

President Obama has announced two new small business lending initiatives to help increase access tosbalogosmall capital and create jobs. These temporary Small Business Administration (SBA) initiatives include a refinancing program for small business owner-occupied commercial real estate and an expanded working capital loan program.

At the same time, the President continued his call for a permanent increase of the maximum loan sizes for SBA’s 7(a), 504, and microloan programs and to extend the successful small business Recovery Act lending programs. These initiatives are part of the Administration’s broader agenda to improve access to credit for small businesses, including a proposal to transfer, through legislation, $30 billion to a new Small Business Lending Fund that will support lending by community and smaller banks.

The new proposals:

• Expand SBA’s existing 504/Certified Development Company (CDC) program temporarily to support refinancing for small business owner-occupied CRE loans that are maturing in the next few years and help refinance over $20 billion each year in commercial real estate that might otherwise be foreclosed and liquidated.

• Temporarily increase the cap on SBA Express loans from $350,000 to $1 million to expand access to much-needed working capital and allow more small businesses to take advantage of the streamlined approval process.

More information about these proposals is available on the SBA Web site, www.sba.gov/.


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