SBA issued the following statement on Friday the 19th of February from Administrator Karen Mills regarding efforts to ensure continued funding for two key provisions in the American Reinvestment and Recovery Act (ARRA) of 2009:
"SBA's most popular ARRA provisions - the increased guarantee and reduced fees in the two largest lending programs - have helped engineer a significant turnaround in SBA lending. Continuing those ARRA provisions is SBA's top priority. Through the original $375 million and the additional $125 million appropriations for these two provisions, SBA has supported more than $20 billion in lending to small businesses across the country and seen its average weekly loan volume increase by nearly 90 percent since February 2009. Through ARRA we brought nearly 1,100 lending institutions back to the SBA's programs that had not made an SBA loan since at least 2007. All told, these steps have benefitted tens of thousands of small businesses and supported hundreds of thousands of jobs during these tough economic times. However, we know there is still more work to be done. As the President has requested, we will continue to work with Congress to extend these programs through September 2010.
"The additional $125 million appropriation approved in December to extend SBA's 7(a) loan guarantee to 90 percent and reduce or eliminate borrower fees on both the 7(a) and 504 loans will be used faster than expected. Loan volume has surged since earlier this week when an Information Notice was released to lenders. SBA communicated with its lending partners on Friday, February 19th that it will re-activate the Recovery Loan Queue no later than Monday, Feb. 22. The Queue is an efficient and transparent process that will ensure that every remaining dollar possible is made available to help small businesses drive economic recovery across the country.
"The SBA advocates for small businesses across the federal government and will continue its efforts to keep America's small businesses on a path to recovery and long-term success. Small businesses are a central piece of President Obama's Jobs Plan because they have been and will continue to be a key engine for job creation across the country. With that in mind, President Obama laid out an aggressive agenda for providing small businesses with the support they need to create jobs and drive economic recovery. That agenda includes proposals in three key areas: expanding access to capital; providing tax incentives to encourage job creation; and maximizing the potential of innovative, high-growth companies."
At publication, the Recovery Loan Queue has been reactiviated and, for the 504 program, is working as it did in December. Contact your Evergreen Loan Officer for guidance on new and in process 504 loans.