A bill to extend the popular incentives that helped boost lending for small business acquisition and expansion last year and earlier this year may be passed by the U S Senate in the next few days, according to Mary Landrieu (D-LA) Chair of the Senate Committee on Small Business and Entrepreneurship. Among other things, the legislation is intended to waive loan fees and provide lenders with up to 90% guarantee under the SBA 7(a) and 504 loan programs.
Called the Small Business Jobs Bill, the act was taken up by the Senate at the urging of Majority Leader Harry Reid (D-NV) late last month, after the U.S. House of Representatives passed similar legislation, the Business Lending Fund Act of 2010, on June 17 and sent it to the Senate for review.
Landrieu said the Senate’s version could spur up to $300 billion in loans to small businesses. She predicted there will be 60 votes in favor of the measure--enough to insure passage.
The incentive program was initiated in February of last year with a $375 million grant to the SBA under the American Recovery and Reinvestment Act. With funds depleted in November, Congress came to the rescue toward the end of the year, providing an additional $125 million, then again in March of this year with another $60 million.
Congress has backed efforts to keep money flowing to small businesses through the SBA with several legislators stressing the importance of the small business sector to the economy and to job growth. And Karen Mills, SBA Administrator, credited the lending incentives programs, earlier this year, with helping to generate $22 billion in loans, aiding 55,000 small businesses across the country.
Hopefully this legislation will go through and money will be again flow to local lenders who can provide financing for business purchases. If any readers know of any banks or financial institutions making loans at this time for business purchase and are serious about this market please phone me at 866-270-6278 - I am attempting to build a network of serious lenders who want to provide SBA loan financing for small business purchases in the California marketplace.
Do you have any recent success stories for business purchases utilizing SBA financing? Let me know - phone me at 866-270-6278.
About The Author: Peter Siegel, MBA is the Founder and President of www.BizBen.com - California Businesses For Sale (established since 1994) - the largest website of thousands of businesses for sale and resources for buying and selling small to mid-sized businesses in the California marketplace. He is the author of Selling A California Business - The Ultimate Guide For California Business Owners, and Buying A California Business - The Ultimate Guide For Savvy Business Buyers. Peter Siegel, MBA can be reached at 866-270-6278.