Search
 

President Bush Signs SBA Funding Legislation; Raises SBA Lending Authority

WASHINGTON-President George W. Bush has signed into law a bill boosting the Small Business Administration's lending authority for the remainder of the 2004 fiscal year. "The President's action today will allow the SBA and small businesses the opportunity to get down to the business of financing growth and creating jobs...

By Staff Writer | Updated on April 13, 2004

WASHINGTON-President George W. Bush has signed into law a bill boosting the Small Business Administration’s lending authority for the remainder of the 2004 fiscal year. “The President’s action today will allow the SBA and small businesses the opportunity to get down to the business of financing growth and creating jobs for the U.S. economy,” SBA Administrator Hector Barreto said. “I believe we can expect another record-breaking year for the SBA’s flagship 7(a) loan program, and another historic year for America’s small businesses.” The new funding, which the House and Senate approved unanimously, will raise SBA’s lending authority for its 7(a) program, widely popular among credit unions, by $3 billion for the current year for a total of $12.5 billion. The additional money will allow SBA to raise its temporary cap on 7(a) loans of $750,000 back to its usual $2 million and raise the potential guarantee up to 75%. With the new funding structure, the program will be able to reach up to 90,000 small businesses this fiscal year, which will create or retain approximately half-a-million jobs. The bill also increased the cap on SBA Express loans-which allow the lender to use their own paperwork-from $250,000 to $2 million. The Express program provides a 50% guarantee but requires less paperwork and training. Piggyback loans will also be permitted once again. In addition, the legislation reauthorizes the 504-loan program for business real estate lending that credit unions are beginning to show an interest in and sets authorization levels for the Small Business Investment Company program through the end of the fiscal year. It also guarantees that SBA’s Small Disadvantaged Business and Preferred Surety Bond programs will remain intact through June 4, 2004.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.