Small Business Administration recovery lending has been extended through April.
Signed by President Barack Obama on Friday, the legislation will enhance the SBA’s two largest small business loan programs. First made available under the American Recovery and Reinvestment Act, the enhancements include fee relief and a higher guarantee on some SBA-backed loans.
The $40 million extension will support about $1.4 billion in small business lending.
“These programs have been successful in helping jump-start our economy,” said SBA Administrator Karen Mills, “which is why we will continue to work with Congress on a longer extension of the increased guarantee and reduced fees.”
The SBA received $730 million to help small businesses, as part of the Recovery Act enacted on Feb. 17, 2009, including $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7 (a) and 504 loans.
The money for these programs was exhausted on Nov. 23, and an additional $125 million was provided in December. However, those funds were exhausted near the end of February. Then an additional $60 million was provided, but that funding was exhausted late Friday.
Because of the latest extension, the SBA may continue to waive loan fees and provide higher guarantee levels on 7(a) loans through April 30, or until the funds provided under the bill are exhausted.
For more information, visit the SBA’s Web site.