In a late-night vote, the Senate Thursday passed a $30 billion amendment out of limbo and back into a larger bill that should come up for vote next week. The amendment, which had been removed from the full bill earlier in the week, passed cloture on a 60-39 vote, which will now allow it to pass on a simple majority vote. There are still questions on the future of the overall bill, which should be up for vote sometime next week as well, but most expect passage.
One of the concerns of Senators opposed to the amendment was the possibility of another TARP-style program because it again would provide money to banks rather than directly to small businesses. Senator George LeMieux (R-FL) assured fellow Senators that this bill would be different because it would be providing money to small community banks, with incentives to lend to small businesses. The Independent Community Bankers of America (ICBA) had sent a letter earlier supporting the legislation and calling the fund “the core component of this legislation and the provision that holds the most promise for small business job creation in the near term.”
The Small Business Jobs Act is considered an important step in the recovery process in part because it would extend the Small Business Administration’s extended loan guarantees through the end of 2010. It would also raise the maximum 7(a) loan size from $2 million to $5 million and temporarily raise the 7(a) Express Loan limit to $1 million for one year from passage. SBA 504 loans would be permanently raised to $5 million to $5.5 million and for two years could be used to refinance existing commercial mortgages. These areas alone could make a huge difference in the ability of small businesses to weather the current financial storms. Additionally, the bill will make changes in SBA microloans and create another level between microloans and general loans.
Will this bill be a perfect solution to the lingering affects of the Recession? Of course not - nothing created by Washington is ever perfect. But the benefits to small businesses, and therefore to the overall economy, could be substantial. As always, the devil will be in the details, and we will have to wait to see all of those. For now, if you are interested in knowing more about the Small Business Jobs Act you can visit Senate Committee on Finance’s information page, or read a summary of the bill in the New York Times.
Here at SBA Loan Store and Francis Financial our goal is to help your business work through the often confusing layers of regulations and requirements that go along with applying for SBA-backed loans. With over 30 years of experience, we can guide you through the process or handle the details for you. Please visit our websites through the links below to learn more about how we can help you and your business.
Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com, on LinkedIn, or at 888-666-9722.
One of the concerns of Senators opposed to the amendment was the possibility of another TARP-style program because it again would provide money to banks rather than directly to small businesses. Senator George LeMieux (R-FL) assured fellow Senators that this bill would be different because it would be providing money to small community banks, with incentives to lend to small businesses. The Independent Community Bankers of America (ICBA) had sent a letter earlier supporting the legislation and calling the fund “the core component of this legislation and the provision that holds the most promise for small business job creation in the near term.”
The Small Business Jobs Act is considered an important step in the recovery process in part because it would extend the Small Business Administration’s extended loan guarantees through the end of 2010. It would also raise the maximum 7(a) loan size from $2 million to $5 million and temporarily raise the 7(a) Express Loan limit to $1 million for one year from passage. SBA 504 loans would be permanently raised to $5 million to $5.5 million and for two years could be used to refinance existing commercial mortgages. These areas alone could make a huge difference in the ability of small businesses to weather the current financial storms. Additionally, the bill will make changes in SBA microloans and create another level between microloans and general loans.
Will this bill be a perfect solution to the lingering affects of the Recession? Of course not - nothing created by Washington is ever perfect. But the benefits to small businesses, and therefore to the overall economy, could be substantial. As always, the devil will be in the details, and we will have to wait to see all of those. For now, if you are interested in knowing more about the Small Business Jobs Act you can visit Senate Committee on Finance’s information page, or read a summary of the bill in the New York Times.
Here at SBA Loan Store and Francis Financial our goal is to help your business work through the often confusing layers of regulations and requirements that go along with applying for SBA-backed loans. With over 30 years of experience, we can guide you through the process or handle the details for you. Please visit our websites through the links below to learn more about how we can help you and your business.
Put amendment on the floor?
Posted by: laminate flooring | 08/04/2010 at 05:59 AM