Stimulus package provides $730M for SBA programs

The $787 billion federal economic stimulus package signed into law Tuesday includes $730 million for the U.S. Small Business Administration to assist small companies with financing.

"The tax incentives and credit stimulus elements of the Recovery Act will truly help small-business owners affected by the credit crunch, and will provide financing opportunities to help them create new jobs in their communities," acting SBA Administrator Darryl K. Hairston said in a news release. "There's a lot to digest in the legislation, and SBA has established teams to tackle a wide variety of policy decisions, system modifications, regulatory changes, legal requirements and new program launches authorized by the president and Congress."

The stimulus funding for SBA will cover:

• $375 million for temporary fee reductions or eliminations on SBA loans, and for increased SBA guaranteed shares, up to 90 percent for some loans;

• $255 million for a new loan program to help small businesses meet existing debt payments;

• $30 million to expand SBA's Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders;

• $20 million for technology systems to streamline SBA lending and oversight;

• $15 million to expand SBA's Surety Bond Guarantee program;

• $25 million for staffing to meet demands for new programs; and

• $10 million for the Office of Inspector General.

The bill also authorizes refinancing for some SBA loans and expands leverage capability for "small business investment companies."

SBA will provide more details on implementation of the new and expanded programs in the next few weeks, according to the release.[[In-content Ad]]