The Senate Small Business Committee will mark up S. 2869 next Thursday, December 17th. Highlights of the legislation include:
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Increase the loan limit on 7(a)* loans from $2 million to $5 million.
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Increase the loan limit on 504* loans from $1.5 million to $5.5 million.
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Increase the loan limit on microloans from $35,000 to $50,000.
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Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans.
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Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010.
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Direct the SBA to create a website where small businesses can identify lenders in their communities.
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Increases the maximum guarantee on 7-A loans to $4.5 million
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Changes the eligibility criteria to (a) a tangible net worth not to exceed $15 million and (b) the average net income after Federal Taxes over the past two full fiscal years is not more than $5,000,000
CenterPoint Business Advisors feel this piece of legislation is a very important element in creating a broad economic recovery. This bill is being closely monitored by our industry trade group, the International Business Brokers Association (IBBA).
* The 7(a) and 504 programs are lending programs administered by the Small Business Administration to support the growth of small businesses.
