The Senate is this close to finally making more capital available to small businesses – but they need a push from US. (See below for what you can do.) The Senate was hoping to end debate by yesterday on the Small Business Legislation bill currently under discussion (Small Business and Jobs Creation Bill – H.R. 5297) However, the vote to end debate and move forward fell two votes short today, meaning the back and forth will continue for now. As part of the bill, a number of provisions and amendments are being discussed that would help small businesses borrower money, and unlike the American Reinvestment and Recovery Act (ARRA), many such provisions to help small businesses access capital would be cost neutral to the taxpayers.
Two importants loan programs for small business borrowing are the SBA 7a and SBA 504 programs. One critical change to these programs is to increase the amount businesses can borrow. For example, the 7a program is capped at $2 million, and it has been capped there for over 6 years. Raising this would allow SBA loans to help many more businesses AND not cost the gov or taxpayers money. Additionally, the 504 program is currently allowed for use in refinancing Commercial Real Estate (CRE) only in rare cases. Primarily, it is a tool for buying and developing property for use in business. This bill could include a change to allow the 504 program to be used for refinancing CRE – a critical need for many of the country’s businesses facing expiring loans without lenders ready to step up with refinance options.
Help us support small businesses and access to capital for business and property owners – through measures that will be cost neutral or even profitable for the government – by contacting your Senators in the next 24 hours! Express your support of this Bill and the associated measures to increase SBA loan limits and expand SBA loan eligibility. Find your Senator here – Senator List