SBA to resume loans after temp. extender is signed

WASHINGTON (3/5/10)--The U.S. Small Business Administration (SBA) has announced that it will be able to resume Recovery Act loans on March 10 after President Obama on Tuesday signed temporary funding legislation.

The funding, which has been extended until March 28, "will support about $1.8 billion in small business lending," according to the SBA.

New approvals of eligible loans with the higher guarantee and reduced fees made possible by the Recovery Act are expected to resume on March 10.

"Loan applications from borrowers in SBAs Recovery Loan Queue will be funded first, followed by new loan applications," the SBA said.

In a Thursday release, Small Business Administrator Karen Mills said that the SBA will "continue working with the President and with Congress to move forward with proposals for a longer extension" of the loan programs that have been successful in helping jump-start the economic recovery for Americas small businesses.

H.R. 4691, the "Temporary Extension Act of 2010," extends funding for the National Flood Insurance Program, Stimulus Act small business loan guarantee programs, federal unemployment insurance, COBRA benefits, and other select federal programs.

The SBA said that H.R. 4691 "does not affect other SBA Recovery Act programs, including the Americas Recovery Capital loan program" or microloans.

H.R. 4213, which would extend flood insurance and small business provisions through the end of 2010, could be voted on this week.

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