SBA Administrator, Karen Mills, discussed the SBA's achievements for 2009 and its goals for America's small businesses next year at a National Press Club luncheon last month. Mills reiterated the Administration's mission to assist small businesses in three key ways - access to capital, assistance with contracting opportunities and counseling.
Mills said she is heartened by the success of the American Recovery and Reinvestment Act (ARRA) in bringing both lenders and borrowers back into SBA's lending programs over the last nine months. She credited the temporary elimination of SBA 504 and 7(a) loan fees and the 90% guarantee on 7(a) loans as the provisions that provided the most incentive for banks to again lend and small businesses to again borrow.
Mills pointed out that the $375 million the SBA received in ARRA funding has resulted in $16 billion in small business lending. Based on the increase in lending activity following the stimulus provisions, the SBA is now requesting that the fee elimination be extended through 2010 and that loan limits be increased to $5 million for 504 loans and $5.5 million for 504 loans to manufacturing businesses.