No products in the cart.
Obama Unveils Small Business Lending Boost
From the White House:
To get small businesses more access to the credit they need to grow and thrive, the Administration will seek legislation to increase the maximum size of three types of Small Business Administration loans. Increasing the maximum loan size of 7(a) loans from $2 million to $5 million will help small businesses invest in machinery, equipment, land, and buildings. Increasing the maximum loan size of 504 loans up to $5.5 million will help small businesses grow and expand their payrolls by supporting real estate purchases. And increasing the maximum loan size of SBA microloans from $35,000 to $50,000 will give a boost to start-ups and other smaller businesses.
This should be helpful, assuming it doesn’t turn into the SBA’s dealer floorplan financing program, which essentially has failed to do many deals at all. It’s one thing to raise the loan limit; it’s another thing to approve a significant number of loans at the higher limit. The approval rate remains to be seen.
Please login to join discussion
