by Kim Kilpatrick
April 5, 2010 2:32 PM
It is not too late for self storage owners or prospective self storage owners who need a small business loan to take advantage of the Small Business Administration’s Recovery Act funding, according to a statement released by the SBA last week. President Barack Obama has signed legislation earmarking another $40 million for the SBA to use to increase the level of its guarantees for small business loans classified as 7 (a), and making it possible for the SBA to pick up the borrower’s fees for loans classified as 7 (a) or as 504.
The original $730 million set aside by Congress for use by the Small Business Administration’s Recovery Act programs was used up by November 2009. Congress provided another $125 million in December, and that lasted until late February of this year. Another $60 million was provided in early March, but that is now gone. Now Congress has set aside another $40 million to extend the program until April 30.
“Thousands of small businesses across the country have taken advantage of these Recovery loan enhancements to get the capital they need during these tough economic times,” SBA Administrator Karen Mills said in a statement released on March 29. “The increased guarantee and reduced fees on SBA loans helped put more than $23 billion into the hands of small business owners and brought more than 1,100 lenders back to SBA loan programs….These programs have been successful in helping jump-start our economy, which is why we will continue to work with Congress on a longer extension of the increased guarantee and reduced fees.” Mills went on to explain that the Obama administration was encouraging Congress to increase loan limits for SBA loans and to provide funding to help commercial property owners to refinance their mortgages, potentially helping small business owners to avoid being foreclosed upon.
Unfortunately, the new funding is not applicable to loans that went through while Congress was considering adding the new funds, so businesses that received their loans and had to pay their own fees cannot apply for retroactive fee relief.
Sources used:
Jean, Sheryl. “Small business loan program to be extended to April 30.” Dallas Morning News. March 30, 2010.
Self Storage Association. “Self Storage Association fact sheet.”
United States Small Business Administration. “SBA recovery lending extended through April 30: Administrator Mills urges longer-term extension for successful programs.” March 29, 2010.
United States Small Business Administration.