The Small Business Administration on Monday released a report on its economic recovery efforts and impact, highlighting progress made to date, including supporting more than $29 billion in Recovery loans to small businesses.
SBA received $730 million in the American Recovery and Reinvestment Act to help unlock the small-business lending market and get capital flowing again to small businesses in the United States. As a result of the success of these programs, SBA has received an additional $305 million to continue some ARRA programs through May.
To date, SBA has supported more than $29 billion in Recovery loans to small businesses. As of Aug. 13, SBA has supported more than $29.5 billion in small business lending with the approval of $22.2 billion in Recovery loans since Feb. 17. From Feb. 17, 2009 to July 16, 2010, weekly SBA loan dollar volumes rose more than 90 percent in the 7(a) and 504 programs, compared to the weekly average before passage. Additionally, SBA has approved 8,227 ARC loans totaling over $266 million by 1,281 lenders to help small businesses make it through the current economic slump.
SBA has implemented programs for all of the $730 million in SBA Recovery Act funding and an additional $305 million provided in December, February, March and April for the agency’s lending programs, including eliminating and reducing fees for borrowers on 7(a) loans and for borrowers and lenders on 504 loans; taking steps to ensure the stability of the secondary market for SBA loans; and expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies.
SBA has also adopted two new programs complementing the ARRA measures and increase access to capital for small businesses by expanding 7(a) loan eligibility to more than 70,000 small businesses through a temporary alternate size standard, as well as offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.