SBA catches up on loans after Act passes

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After months of backlog, all applications in the Small Business Administration’s loan queue have received final approval.

The approval amounts to almost $970 million, or 1,939 loans, all because the Small Business Jobs Act of 2010 was passed Sept. 27.

The act provided funding for the extension of increased guarantees and reduced fees in SBA’s two largest loan programs. In May, the higher loan guarantees expired and funds soon ran out. Small business owners have been waiting since then for approval.

Of the loan approvals, 1,273 were new loans, for $586 million, with funds provided by the Small Business Jobs Act. And 666 loans, or more than $383 million, were approved with earlier funding that became available after cancellations of applications that had been approved previously under Recovery Act loan terms.

“Within days of the President’s signature, the authority and the funding provided in the Small Business Jobs Act have allowed us to clear out our loan queue and begin getting capital in the hands of the more than 1,900 small business owners who had been waiting, some for most of the summer,” said SBA Administrator Karen Mills.

The Small Business Jobs Act will support an estimated $14 billion in lending with only $505 million in taxpayer funds, including many of the loans approved from the queue.