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Responding to strong demand for Small Business Administration (SBA) loans to fund America’s small businesses, President Obama has just signed a bill that increases the amount of loans that the SBA can offer through its network of authorized lenders.“The bill that was just signed is a huge benefit to small business owners,” explains Meghan Robinson, CEO of Sunovis Financial. “If you are awarded a 7(a) loan, the money may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. Adding to the good news is the fact that Congress increased the amount of loans the SBA is authorized to make under 7(a) for this year and 2015 to $18.5 billion, showing strong support for the popular loan program.”
Increases in government guarantees have boosted the pace of 7(a) lending to record levels, and so far more than $17.3 billion of these unique loans have been approved in fiscal year 2014.
Nearly $18 billion in 7(a) loans were approved last year, and one of the reasons that 7(a) loans are so popular is that in 2010 Congress increases the maximum size for them from $2 million to $5 million. Already this year the SBA has approved more than 1,670 loans in excess of $2 million.
Those higher-value loans total $5.1 billion, and account for nearly 30% of the total volume processed this year at the SBA. That is 27% more money in the form of loans over $2 million than the SBA approved during the same time-frame a year ago.
The SBA also announced that both the yearly fee and the guarantee fee, which is paid up front, will be zero for 2015 if the amount borrowed is less than $150,000. That makes these user-friendly loan even more affordable and accessible, at a time when hundreds of thousands of entrepreneurs and small business owners need funds to help them grow and expand.
“Loans that are supported by guarantees from the SBA have become a preferred source of cash for small businesses and entrepreneurs,” Robinson says, “and growth at the SBA over the last few years has been phenomenal. In 2011, for example, the agency transacted $30.5 billion, an all-time high. But the following year the agency broke that record with loans of more than $30.25 billion. Along the way the SBA also streamlined the process for loan applications, making them more user-friendly.”
Contact Info:
Name: Meghan Robinson
Email: Send Email
Organization: Sunovis Financial
Address: Overland Park
Phone: 855 243-7191
Website: http://www.sunovisfinancial.com
Release ID: 65518
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