SBA Small Business Lending Bill

The Senate Small Business Committee will mark up S. 2869 next Thursday, December 17th.  Highlights of the legislation include:

  • Increase the loan limit on 7(a)* loans from $2 million to $5 million.
  • Increase the loan limit on 504* loans from $1.5 million to $5.5 million.
  • Increase the loan limit on microloans from $35,000 to $50,000.
  • Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans.
  • 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.
  • Direct the SBA to create a website where small businesses can identify lenders in their communities.
  • Increases the maximum guarantee on 7-A loans to $4.5 million
  • 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.