Changes to Small Business Loan Programs Should Help Many
A new bill that could go along way towards helping America’s small businesses get back on their feet is currently being considered in Washington. The bill would likely give banks and lenders the impetus they need to make loans to the many credit-worthy businesses who need to refinance or who need working capital. It is called “The Small Business Job Creation and Access to Capital Act of 2009.”
The bill has multiple components, but 4 of them have the ability to really benefit the small business owner:
1. An increase in the SBA 7a loan limit from $2 million to $5 million
2. An increase the SBA 504 loan limit from $1.5 million to $5.5 million
3. A provision to allow business owners to refinance their commercial property with the SBA 504 program. (This would be a fairly dramatic development since their are so many businesses that are unable to refinance their existing commercial real estate loans).
4. An extension of the 90% SBA guaranty for 7a loans and a continuation of the SBA fee waivers for 7a and 504 loans through the end of the 2010. (This is probably the most important piece of legislation in the bill since many banks and lenders do not feel comfortable with anything less than a 90% guaranty from the SBA).
The Senate Committee on Small Business and Entrepreneurship has passed the bill, but it still has a way to go. The good news is that both Democrats and Republicans agree that getting credit to small businesses is the best way to revive the economy.
For those of you unfamiliar with the process, here is a good tutorial on how a bill becomes a law 
http://www.youtube.com/watch?v=mEJL2Uuv-oQ
{ 0 comments }