Banks one step closer to an uptick in lending

NORTH BAY -- This morning, the Senate passed HR 5297, the small business lending bill that once made into law will greatly increase the reach of Small Business Administration loans.

The bill still needs to be ratified and to go to the president, but, said Michael Rice, senior vice president of small business lending at Circle Bank, the expectation is that it will be law by next Friday.

The bill creates a $30 billion lending fund for community banks.

The bill would extend the fee reductions for SBA 7(a) and 504 loans and increase the guarantee to 90 percent through Dec. 31, or until $505 million in appropriations has been contracted.

There will be a permanent increase to the size of the loans, $5 million for both 7(a) and 504, and a temporary increase of $1 million for express loans.

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