President Obama signed into law a $40 million investment in a U.S. Small Business Administration (SBA) program that should spur $1.4 billion in small-business loans. The American Recovery and Reinvestment Act (ARRA) program expired in March and has now been extended through April.
Under the program, the federal government will guarantee up to 90% of SBA loans issued by banks and waive borrower fees. Previously, the government guaranteed up to 80% on SBA loans less than $150,000 and 75% for larger loans. According to the SBA, the reduced fees and increased guarantees under ARRA have helped put more than $23 billion into the hands of small-business owners and brought more than 1,100 lenders back to SBA loan programs.
Questions? Contact Stuart Gosswein.