The Huntsville Item, Huntsville, TX

Business

March 5, 2009

Budget backs $28 billion in small business credit

The following information was recently released by the U.S. Small Business Administration (SBA) concerning small businesses: President Barack Obama’s FY 2010 Budget Overview offers full support for the U.S. Small Business Administration’s credit programs, authorizing SBA to support loan guarantees of $28 billion to small businesses.

The FY 2010 Budget Overview provides a broad outline of the President’s budget priorities, including an appropriation for SBA of approximately $700 million. The full budget proposal will account level appropriation details are scheduled for release in April.

The spending cited in the broad proposal would be in addition to the $730 million funding provided for SBA credit programs in the recently enacted Recovery Act. That Act – for which most spending is targeted for use in 2009 and 2010 – authorizes SBA to raise guarantee percentages on some SBA loans to 90 percent, temporarily reduce fees on SBA-backed loans, expand funding for Microloans, and raise the maximum size of SBA-guaranteed surety bonds.

The bill outlines maximum authorization levels for SBA credit programs well above current demand for those programs. It sets a maximum of $17.5 billion for SBA’s 7(a) General Business Loan Guarantee program, $7.5 billion for the 504 Certified Development Company Loan program, $3 billion for the Small Business Investment Company debenture program and $25 million for the Microloan program.

The bill also provides for $1.1 billion in direct disaster loans and provides for the launch of a pilot program to test the use of SBA-guaranteed loans as part of the agency’s response to disaster declarations.

Aside from those credit provisions, the proposal:

• sustains funding for the agency’s technical assistance and training programs

• improves federal contracting data and continues reviews of small business size standards to help improve targeting of federal contracting opportunities for small businesses

• modernizes core agency information systems, streamlines loan processes and enhances human capital resources

Text Only
Business
Photos


House Ads
Twitter Updates
Follow us on twitter
Facebook
AP Video
Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide