SBA implements higher maximum loan sizes


first_imgOn the heels of completing final approvals of loans to nearly 2,000 firms that has been in its loan queue waiting for final approval of the Small Business Jobs Act, the US Small Business Administration has finished implementation of another major element of the bill: increasing maximum sizes in several of its loan programs.The changes – effective today – are permanent for general small business loans under SBA’s 7(a) guaranteed loan program, fixed asset loans through the 504 Certified Development Company program, Microloans, and International Trade, Export Working Capital and Export Express loans.  A temporary increase for SBA Express loans is good for one year. “Across the country, there are small businesses owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that,” SBA Administrator Karen Mills said.  “Whether they’re in the start-up phase and could use a microloan or are looking to take advantage of lower real estate prices and interest rates to buy a new building to expand, SBA loans can now be an even greater resource to help entrepreneurs and small business owners get the capital they need.“Additionally, temporarily increasing the cap on SBA Express loans from $350,000 to $1 million will allow more small businesses to take advantage of the streamlined approval process for working lines of credit and other capital they need,” Mills said.Under the Jobs Act provisions, SBA has permanently increased 7(a) and 504 limits from $2 million to $5 million, and for manufacturers and certain energy-related projects seeking 504 loans, to $5.5 million.  The maximum for International Trade and Export Working Capital loans also has been increased from $2 million to $5 million. SBA also permanently increased microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities. It also raised the limit on Export Express loans, from $250,000 to $500,000, and made the program permanent.SBA Express loan limits have been temporarily raised from $350,000 to $1 million for one year.  These loans offer a streamlined application process with reduced paperwork and approval often in a matter of days.  Unlike traditional 7(a) loans, SBA Express loans carry a 50 percent guarantee and can be used as revolving lines of credit – to help restock inventories and support larger revenue sales – which are particularly critical for small businesses as they emerge out of the recession.SBA’s own trends show increasing demand for larger loans.  The percentage of lending volume for guaranteed loans greater than $1.5 million has grown, from 13 percent of total dollars approved in fiscal year 2005 to 21 percent in fiscal year 2010, with many loans actually at the $2 million maximum.  In the 504 program, the percentage of loan volume committed to loans greater than $1.5 million also has grown, from 15 percent of total dollars approved in fiscal year 2005 to 25 percent in fiscal year 2010.SBA has already put in place the alternate size standard that expands eligibility for SBA-backed loans that was included in the Jobs Act, increasing the alternate size standard to include those small businesses with less than $15 million in net worth and $5 million in average net income.Additionally, Administrator Mills announced on Tuesday that all loan applications placed in the SBA’s loan queue by small business borrowers had received final approval, amounting to 1,939 loans for nearly $970 million.  The loans were able to make use of loan guarantees up to 90 percent and reduced fees extended under the Jobs Act. Many of the loans had been in the queue waiting for the extension since May.The bill provided the agency with enough funding to support an estimated $14 billion in lending to small businesses with the extension of higher guarantees and reduced fees in the top two loan programs, first implemented as part of the American Recovery and Reinvestment Act of 2009.The Jobs Act also includes additional resources to help increase lending to small businesses, including the State Small Business Credit Initiative announced today by the Department of Treasury that will support $15 billion in lending through local programs and the Small Business Lending Fund, which will provide capital to local, community banks to increase their lending to small businesses.Additionally, the new law contains $12 billion in tax credits targeted to small businesses, including higher deductions for investing in new machines and equipment, zero capital gains for those who buy and hold small business stocks for five years, and a doubling of the maximum deduction for startups to $10,000.  It also allows self-employed Americans to completely deduct health insurance costs for themselves and their families.  Source: SBA. 10.8.2010last_img read more

The Latest: Yankees closer Chapman has virus, symptoms


first_imgThe NHRA resumed its season Saturday in front of an expected crowd of 3,000 to 4,000 at Lucas Oil Raceway in Indianapolis.Fans were not allowed at Friday’s practice session but returned in a limited capacity for qualifying NHRA President Glen Cromwell said ticket sales were capped at about 10 to 15% of normal capacity.They also are expected to attend Sunday’s finals.Most fans wore face coverings on a hot, sun-drenched day, complying with county guidelines, and observed social distancing in the stands, pits and at concession areas.John Force Racing did not attend the first of two consecutive weeks of activity in Indianapolis. Manager Aaron Boone announced the diagnosis Saturday. He said Chapman “overall is doing well” but “will not be here for the foreseeable future.”Chapman threw a bullpen session Tuesday, and Boone wouldn’t comment on whether he had been at Yankee Stadium since. Boone said the team had gone through contact tracing protocols, and no other players or personnel would be forced to isolate because of Chapman’s positive test.The Yankees will open their regular season July 23 against the World Series champion Nationals at Washington. If Chapman isn’t back by the opener, Boone said left-hander Zack Britton would be a “natural guy” to replace him, but a formal decision hasn’t been made.Chapman, a six-time All-Star, has 273 career saves, including 37 last season when he had a 2.21 ERA.___ The weekend ends a 138-day hiatus for America’s top drag racing series.“The NHRA Task Force spent months going through detail after detail to get this done,” Cromwell told The Associated Press. “It’s been a lot of work the past 3 1/2 months.”___Coronavirus cases spiking in the Las Vegas area contributed to the NHL choosing two Canadian cities to complete its season.Deputy commissioner Bill Daly on Saturday called the rise a “concern” to the league. He adds that it was “one of the reasons” the NHL chose to put games in Toronto and Edmonton, Alberta. Las Vegas was long considered a front-runner. The Latest: Yankees closer Chapman has virus, symptoms Captain Tom was aged 99 in April when he decided to do laps of his backyard garden on his walker until his 100th birthday to fundraise for Britain’s National Health Service. He aimed for 1,000 pounds ($1,200). By his birthday on April 30, he raised nearly 33 million pounds ($42 million).He was knighted in May.Beckham said: “The highlight of my whole career was being made England captain. To have Sir Tom as our captain — it doesn’t get any better than that.”___The Houston Astros have canceled their workout after learning that a staff member could have been exposed to a person outside the organization with the coronavirus. July 11, 2020 Associated Press It’s the second time this week the Astros have canceled a workout because of concerns about the pandemic. Houston also scrapped its Monday workout because of delays with testing results due to the holiday weekend, as did some other teams around the majors.General manager James Click said they decided to cancel Saturday’s workout as a precaution.“As part of MLB’s testing and reporting plan, we were alerted that a staff member was potentially exposed to a COVID-positive individual outside the organization,” Click said. “Out of an abundance of caution, we have canceled today’s workout. We are working closely with MLB and our team physicians to follow the established testing and cleaning protocols so that we can safely bring our players and staff back to the field as soon as possible.”___Parma soccer club has announced that a non-playing member of the team tested positive for the coronavirus. Share This StoryFacebookTwitteremailPrintLinkedinRedditThe Latest on the effects of the coronavirus outbreak on sports around the world:___New York Yankees closer Aroldis Chapman has tested positive for the coronavirus and is experiencing mild symptoms. Parma says the person is asymptomatic and is being isolated according to Italian government protocols. The Serie A club adds that every other member of the team tested negative but that the rest of the squad was being kept under observation at its training center.According to the league’s virus protocol, Parma can still play its home game against Bologna in the top tier on Sunday as usual.___More AP sports: https://apnews.com/apf-sports and https://twitter.com/AP_Sports Daly says one player testing positive when play starts isn’t expected to shut down the playoffs, but an outbreak would change the equation. He didn’t say what the league considered an outbreak.___David Beckham has presented a framed England soccer shirt to Captain Tom Moore, who was named the honorary captain of a special England Lionhearts team.The Lionhearts are an initiative by England’s Football Association to celebrate 23 people who have inspired during the pandemic.Beckham went to the Bedfordshire home of Captain Tom to say thank you to the World War II veteran.last_img read more