Gilmore Bank in Los Angeles, CA just released the following information about great news on upcoming changes to the SBA:

On October 21, 2009, President Obama announced steps that the administration is taking to expand access to capital for small businesses. Senate Bill 1832 was introduced by Senator Mary Landrieu to implement the administration’s initiatives.

HIGHLIGHTS OF THE PROPOSED LEGISLATION INCLUDE:
• Increasing maximum 7(a) loan size to $5 million
• Increasing maximum 504 sizes to $5 million (non-mfg) and $5.5 million (mfg)
• Increasing maximum guarantee dollars to one applicant/affiliates to $4.5 million
• Extending 90% maximum 7(a) guarantee percentage through 10/1/2010
• Extending ARC Loan relief to existing SBA loans
• Increasing the maximum microloan loan size from $35,000 to $50,000

If enacted, the proposed legislation aims to stimulate SBA lending by:
• Extending the popular 90% guarantee for lenders
• Increasing the # of projects that can be financed with higher loan amounts
• Making extra guaranty funds available to those who have maxed-out their SBA guarantee allocations.

In addition, the SBA is also proposing an increase to the existing SBA size standards that will coordinate with the increased loan amounts pending in Congress.

This is the first comprehensive review of the SBA’s size standards in more than 25 years. The SBA press release regarding the new size standards can be found on the government’s Small Business Administration website www.SBA.gov.

Related posts:

1. SBA Looks to offer more commercial loans – October 29, 2009
2. Small loans to keep troubled firms afloat
3. SBA Update – December 18, 2009
4. SBA Expands Eligibility for 7(a) Loans To Spur Recovery Opportunities for Small Businesses
5. President to sign new law on SBA loans