NORTH BAY – The House passed HR 5297 today, the small business lending bill that once made into law will greatly increase the reach of Small Business Administration loans.
Last week, the Senate passed the bill, and now it needs to go to the president.
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.
“The impact this will have on small businesses in Northern California gaining access to capital is significant. This bill is also a huge boost for community banks who participate in the SBA 7(a) and 504 program,” said Michael Rice, senior vice president of small business lending at Circle Bank in Novato when the senate passed the bill last week.