Incentives toward lending for small businesses have been extended and higher government guarantees on small business administration loans have also been confirmed. Lawmakers have also approved fee waivers for loans backed by SBA and this comes as part of the temporary spending bill program.
The Federal government has been funded on the basis of a continuing resolution of the senate that voted 79-16 to let the fund continue through March 4, 2011. House of Representatives consequently voted 193-165 that allowed the legislation to reach the White house.
Since 2009, when the small business incentives were introduced, billions of dollars have been forwarded to credit worthy businesses throughout US that were previously deprived of lending. These extensions are an acknowledgment of congress’s commitment to grant billions of dollars and continue supporting the small business cause.
Congress in September has also enacted the Small Business Act of 2010 that would provide entrepreneurs with a better scope to have access to credit and would cut on taxes. Senator Mary L. Landrieu says “over 17,000 loans have supported more than $8.5 billion in lending with the help of these provisions.”
The SBA recently disclosed its strategic goals till 2014 and in the coming four years it plans to assist small businesses with $74 billion approved loans. Already, the SBA has offered $84 billion to help 20 million businesses. This is what makes it the largest financial consoler in the US. The SBA acts as a guarantor of loans through financial institutions though it does not directly offer loans.
In the past decade, small businesses created 65 percent of net private sector jobs. The SBA is also known to offer loans for international trade and victims of natural disasters.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to