Total value of SBA loans for acquisition and expansion of small businesses throughout the U.S. has nearly reached $30 billion since mid-February of last year, when the government agency added incentives to its 7(a) and 504 lending programs.
In a recent press release, the SBA said it has received a total of $730 million under the ARRA (American Recovery and Reinvestment Act) passed by Congress on Feb. 17, 2009. The funds have helped the SBA boost lending with incentives to borrowers, such as waiving loan fees, and to lenders, by guaranteeing up to 90% of the loans they provide to small businesses.
The SBA also announced that more than 1,350 institutions which had no loan history dating back to 2007 and before, have made small business loans in the period February 17, 2009 to July 16, 2010.
Many
California business brokers contend that the SBA lending programs are critical to the success of business acquisitions throughout the state, by providing the funds needed to complete transactions.
New legislation being considered by Congress, and expected to pass before the House and Senate take their summer break, will provide more funds to the SBA so that it can continue the incentive programs. The agency considers these efforts to be effective in encouraging lending to entrepreneurs wanting to purchase or to expand a business. The SBA predicts the proposed bill, co-sponsored by California Senator Barbara Boxer, will result in about $30 billion in loans through the SBA programs.
WHAT'S YOUR EXPERIENCE?
Have you seen an uptick in SBA backed loans for your transactions or, if you're a broker, your clients' deals?
Do you believe that funds from small business lenders help to make transactions possible?
Would you like to see more lenders participating in small and mid-sized business acquisitions?
Please let me know -- phone me at 866-270-6278
About The Author: Peter Siegel, MBA is the Founder and President of BizBen.com. He is an author, consultant, and advocate on the topic of buying and selling small to mid-sized businesses in the California marketplace. For over 25 years he has assisted business owners/sellers, business brokers, agents, and business buyers. For a FREE consultation on how to best sell or buy a California small business phone him direct at 866-270-6278.
Posted on July 29, 2010 | 
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