SBA Update – What’s Happening in Congress
On Thursday December 10th, Sens. Landrieu and Snowe introduced S. 2869, the Small Business Job Creation and Access to Capital Act. This new bill contains a series of measures that were separately introduced by Sens. Landrieu and Snowe earlier this year. The Senate Small Business Committee will mark up S. 2869 Thursday, December 17th. Highlights of the legislation include:
- Increase the loan limit on 7(a) loans from $2 million to $5 million.
- Increase the loan limit on 504 loans from $1.5 million to $5.5 million.
- Increase the loan limit on microloans from $35,000 to $50,000.
- Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans.
- Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010.
- Direct the SBA to create a website where small businesses can identify lenders in their communities.
- Increases the maximum guarantee on 7-A loans to $4.5 million.
- Changes the eligibility criteria to (a) a tangible net worth not to exceed $15 million and (b) the average net income after Federal Taxes over the past two full fiscal years is not more than $5,000,000.
