In accordance with provisions of the Small Business Jobs Act that took effect Oct. 8, the U.S. Small Business Administration has increased the maximum size of several of its loan programs, according to an SBA news release.
The changes include:
- permanent increases in SBA's 7(a) guaranteed loan program and the 504 Certified Development Company program to $5 million from $2 million;
- permanent increases in loans for manufacturers and certain energy-related projects seeking 504 loans to $5.5 million;
- permanent increases in International Trade and Export Working capital loans to $5 million from $2 million;
- permanent increases in microloans to $50,000 from $35,000;
- permanent increases in Export Express loans to $500,000 from $250,000; and
- temporary increases in SBA Express loan limits to $1 million from $350,000 for one year.
"Across the country, there are small business owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that,” SBA Administrator Karen Mills said in the release. "Whether they’re in the start-up phase and could use a microloan or are looking to take advantage of lower real estate prices and interest rates to buy a new building to expand, SBA loans can now be an even greater resource to help entrepreneurs and small business owners get the capital they need."
The bill provides the agency with enough ammo to support an estimated $14 billion in lending to small businesses.
Additionally, The Jobs Act includes the State Small Business Credit Initative, which will support $15 billion in lending through local programs and the Small Business Lending Fund. It also includes $12 billion in tax credits, which will help small businesses invest in new machines and equipment, the release said.[[In-content Ad]]
