President Obama signed legislation last month to provide $80 million in additional funding for the U.S. Small Business Administration to help give more small businesses access to capital.
The enhancements, initially provided by the American Recovery and Reinvestment Act, include a higher guarantee on some SBA-backed loans and fee relief for small businesses, according to a news release. The funds are expected to support about $2.8 billion in enhanced lending activity through SBA’s 7(a) and 504 loan programs.
Initial ARRA funds – $730 million – were exhausted in late 2009, and an additional $125 million was provided. When the second round of funding was used up, $60 million was provided, followed by another $40 million in late March.
The latest round of funding enables SBA to offer loan enhancements through May, or until all $80 million is used.
“The increased guarantees and reduced fees on SBA loans have generated more than $25 billion in new loans to small business owners and brought more than 1,200 lenders back to SBA loan programs,” SBA Administrator Karen Mills said in a news release. “Small businesses need these improvements to ensure their access to the capital they need to drive economic growth and create jobs in communities all across the country.”[[In-content Ad]]
Adrianna Norris became a first-time business owner with the opening of Finley River Chiropractic; PaPPo’s Pizzeria & Pub launched its newest location; and Huey Magoo’s opened its second store in the Ozarks.