Longer extension hoped for in jobs bill, program has spurred lending
NORTH BAY – The fee waiver and higher guarantee percentage that rolled out last February for Small Business Administration loans was extended for the second time through the end of this month, and it is expected to be extended again through the end of the year.
As part of the Recovery Act, SBA received $730 million, which included $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 funds for these programs ran out on Nov. 23, and an additional $125 million was provided in December. Those funds ran out late February.
The SBA estimated that the additional $60 million that went into the extension through the end of March will support about $1.8 billion in small business lending.
SBA Administrator Karen Mills said, “These key loan programs have been successful in helping jump-start the economic recovery for America’s small businesses. The increased guarantee and reduced fees on SBA loans helped put almost $22 billion into the hands of small business owners and brought more than 1,100 lenders back to SBA loan programs.”
Mark Quinn, district director of the SBA in San Francisco, said the expectation is that the jobs bill will contain an extension to the end of the fiscal year at least.