Today SBA Administrator Karen Mills announced that thanks to the Small Business Jobs Act of 2010, the Small Business Administration has approved more than $10.3 billion in loan guarantees, supporting more than $12 billion in lending to 22,000 small businesses between September 27 and December 31. Signed into law by President Obama earlier this year, the Jobs Act provides an extension of reduced fees and higher guarantee loan enhancements in the SBA’s two largest loan programs.
“These enhancements have been a key piece of the Obama Administration’s efforts to help small businesses drive our nation’s economic recovery. As we transition back to our standard guarantees and fee rates, SBA loan programs will continue to play an important role, as they have for decades, in helping entrepreneurs and small business owners start or grow their businesses and create jobs,” said Mills in a statement. Not surprisingly, there was a rush between December 24th and 28th to get the loans approved before the end of the year. The SBA reported $1.95 billion in small business loans that week, which is the highest dollar volume the agency has been able to track so far.
Eligible businesses can still wait in the queue in case additional funding becomes available, which will happen either through a cancellation of an existing loan or through new legislation. “The Small Business Jobs Act is the most consequential piece of legislation affecting small businesses enacted in more than a decade,” Mills said. “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.”