SBA Recovery Act Funding Extended

by Scott Ramsey on December 21, 2009

Over the weekend, the U.S. Senate voted to extend the SBA Recovery Act provisions through February 2010. Last week the House also voted to extend the Recovery Act so the measure now goes to the President for his signature, which should happen today. You will recall that the Recovery Act increases the guarantee percentage on SBA 7(a) loans for banks to 90% and waives the guarantee fees on 7(a) and 504 loans for the borrower. This measure will free up almost 1,000 loans for about $500 million now in the SBA “queue” awaiting funding.

The Senate Committee on Small Business and Entrepreneurship also passed two bills that will extend the fee reductions and increased guarantees on SBA loans through 2010. This clears the way for a much improved SBA program for all of next year.