On December 19, 2009, the President signed the Department of Defense Appropriations Act, 2010 (P.L. 111-118).  This legislation provides an additional $125 million to support approximately $4.5 billion in new 7(a) and 504 loans.  Specifically, these funds are available for the payment of certain 7(a) and 504 loan fees and a higher SBA guaranty on certain 7(a) loans.  

In plain English, this means that the measures put in place last February for supporting small business lending are going beyond their original sell by date of December 2009.  This current extension is good until February 28, 2010 and retains the increased guarantee on some Small Business Administration (SBA) loans of 90% AND the waiving of certain fees on SBA loans.

There will be an immediate effect on loans that were sitting in the loan queues that were established as the initial funding started to run out.  This new appropriation means that loans in the loan queues will be funded in the order that they were approved. SBA announced that they had cleared the SBA 504 loan queue by Christmas Eve so we can look forward to the funding being applied to new SBA applications.

Another piece of legislation, The Jobs for Main Street Act, is currently in process to extend the provisions until September 2010.

For more information on the extended appropriation go to www.sba.gov. 

Tags: loans, SBA, small business

This entry was posted on Tuesday, January 5th, 2010 at 4:57 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.