The Small Business Administration (SBA) remained the lifeline for the small business community during the economic downturn. Now, as Congress makes a move to make loans available to businesses in 2012, members should consider all priorities so as to help small business create new jobs.
For the fiscal year 2012, SBA’s funding should be raised, so that it provides the assurance that it has required resources to give service to small businesses as well as lenders. Congress also needs to make requisite funds available for extending the 7(a) program.
The availability of requisite funds will make it possible for private sector lenders to grant loans guaranteed by the SBA. An additional funding would also extend fee waivers for the 7(a) and 504 programs. This can range from 2 percent to 3.75 percent for the guaranteed portion of the loan. In 2011, under the SBA’s popular 7(a) and 504 programs, $25 billion has been guaranteed out of the $30 billion SBA fund.
Federal Reserve is going to meet policymakers, practitioners and researchers for discussing about small business capital access. Fed does play an important role in ensuring that small businesses gain access to capital. As Congress ponders on ways to increase small business lending, lawmakers need to endorse the existing programs and help them receive funds from the SBA.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org