Obama Backs SBA $1.8 Billion in Small Business Loans

The Small Business Association announces this week, that Mr. Obama has signed off on a $1.8 billion initiative to continue to help provide higher guarantees and waive fees on SBA backed small business loans .

Loan applications from the SBA queue will receive funding followed by new applicants.  The program is intended to resume on March 10th.

Initially the banks received $730 in government stimulus money to help guarantee 90% of the loans and also waive fees for applicants.  The funds for this program were depleted on November 23rd, but another $125 million were made available in December which ran out in February.

SBA Administrator Karen Mills said, “These key loan programs have been successful in helping jump-start the economic recovery for America’s small businesses.  The increased guarantee and reduced fees on SBA loans helped put almost $22 billion into the hands of small business owners and brought more than 1,100 lenders back to SBA loan programs.”

For the original San Fransisco Business Times article.