Stimulus Relief for SBA Loan extensions Run Out Next Month
The provisions, which helped bolster small-business lending over the past year, had run out of funding in late November. With the new extension, included in the Defense Appropriations bill, the government’s maximum guarantee on SBA loans is restored to 90%, compared to pre-stimulus levels of 75%. Fees that the agency normally changes banks are also waived.
“Small businesses have been left in limbo since the funding ran out,” said Mary Landrieu (D-La.), one of the senators who requested the extension, in a statement. “[The legislation] will provide a lifeline to small businesses in need of credit.”
The provisions, however, are only extended through February. Lenders and small-business advocacy groups will have to wait on another piece of legislation – the House’s Jobs for Main Street Act, which passed in the chamber last week – for the provisions to be extended through next September.
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