The United States Small Business Administration last week announced that as of December 31, 2010, the agency had approved more than $10.3 billion in loan guarantees, which supported more than $12 billion in lending to small businesses since the Small Business Jobs Act of 2010 was signed by President Obama on September 27th. Being backed by the Jobs Act, this allowed for the Small Business Administration to set records by the end of the Last Quarter of 2010.
SBA Administrator Karen Mills also issued a statement in which she said, “The Small Business Jobs Act is the most consequential piece of legislation affecting small businesses enacted in more than a decade. While we are proud of how quickly SBA could provide $12 billion in capital to small businesses, we remain focused on implementing other key provisions of this law that will continue to expand access to capital, help small businesses compete for federal contracting dollars, strengthen small business exports and provide other critical support.”
The large amounts of money that were distributed in the Last Quarter of 2010 were truly inspiring. What that means is the the SBA approved nearly 22,000 small business loans. Since the Jobs Act provided only a $505 Million subsidy, the SBA has activated the SBA Loan Queue. This will ensure that any remaining funds that result from loan cancellations will be redirected back toward the new Jobs Act loans.
Authority to continue the loan enhancements was extended through March 4 by Congress last month. While there is no additional appropriation of subsidy funds to support the loan enhancements, the extended authority does allow the agency to redirect, through the SBA Loan Queue, any dollars that come available from loan cancellations in the coming weeks to new loans with the enhancements.
It is typical that some previously approved loans are later cancelled by the borrower or lender and never disbursed for a variety of reasons. The queue takes this into account and will allow eligible small businesses, in consultation with their lenders, to choose to be placed in the queue for possible approval for a Jobs Act loan if funding becomes available. Small business owners and lenders will have transparent access to the queue via www.sba.gov and will be able to remove themselves from the queue at any time to be considered for a non-Jobs Act SBA-backed loan with all applicable fees and, for 7(a) loans, standard guarantee levels.
The Small Business Jobs Act included an array of provisions aimed at helping small businesses gain access to capital, compete for federal contracting opportunities, expand exporting opportunities and obtain other assistance to help them grow and create jobs. Since the it is such a detailed act, more information on the Jobs Act can be found at www.sba.gov/jobsact.