President Obama recently signed the US Department of Defence appropriations bill which included $125 million to continue the enhancements made possible through the ARRA (American Recovery and Reinvestment Act) to SBA's two largest loan programmes.
As part of the ARRA, the SBA received $730 million, but this funding was exhausted on Nov. 23. The SBA has estimated that this additional $125 million will enable the required support to allow an additional $4.5 billion in small business lending.
"This Administration and Congress recognize that these key programs were successful in helping jump-start the economic recovery for America's small businesses," said SBA Administrator Karen Mills. "The increased guarantee and reduced fees on SBA loans helped put more than $16.5 billion in the hands of small business owners and brought more than 1,200 lenders back to SBA loan programs. The extension of these programs through February is important to continuing our path toward recovery and will mean thousands more small business owners have access to the credit they need.
"Just two weeks ago, President Obama laid out key aspects of his jobs plan, including significant ongoing support for small businesses. We will continue to work with Congress on moving those proposals forward, including extending these loan enhancements as the President called for, to ensure that small business owners have the tools they need to drive economic growth and create jobs in communities all across the country."
Banks that are accepting applications as part of the SBA loan programs have been swamped with applications. The SBA created the Recovery Loan Queue as part of its transition back to pre-ARRA lending on Nov. 23 because previously approved loans are sometimes canceled or never disbursed for a variety of reasons. Eligible small businesses, in consultation with their lender, could choose to be placed in the queue for possible approval of an ARRA loan if funding became available. Currently there are 1,069 loans totaling almost $530 million in the Recovery Loan Queue.
With the queue this large, banks are not even getting the time to look at incorrectly completed applications. This makes it even more important to ensure that your loan application is completely exactly as the banks need it. In order to be successful in your loan application, you'll need to work with a loan consultant or expert. We understand the details of how the SBA loan programs work and know what the banks are looking for on their application.
With the amount of people being declined for these SBA loan applications, its important that you work with a consultant or coach to ensure you don't waste valuable time in getting the credit you need to grow your business.
As a loan expert, myself and other loan consultants have the necessary tools to ensure you can get access to the $4.5 billion in business lines of credit fast! Don't wait until this latest infusion of cash has been used up. Ensure you act today and take the necessary steps before its too late!