The short and sweet of the great SBA news is that the American Recovery and Reinvestment Act increased the SBA’s guarantee of the popular 7(a) loans to 90 percent from a previous maximum of 80 percent. According to SBA Administrator Karen Mills, the Recovery Act hit the mark with September’s 1.9 billion dollar volume the highest total in a month since August 2007.
Making sure small businesses have access to capital is critical to the US economy and its recovery since small businesses represent 99.7% of all firms and employ more than half of US workers; so as far as I am concerned, despite the government’s great news, overall SBA lending is not only down but unfortunately the SBA expects to run out of money to make the increased loan guarantees by the end of the year. Ah, the short and sour!
