Thursday, October 14, 2010

Jobs Act creates larger loans

Small business owners in need of capital may want to look into the recent increases the U.S. Small Business Administration implemented for its loan programs.
The Small Business Jobs Act, signed by President Obama in September, allowed the SBA to implement higher maximum loan sizes for several of its lending programs. Here are a look at the changes:
— The 7(a) and 504 loans permanently increase to $5 million, from $2 million. Manufacturers and energy-related projects can access up to $5.5 million. The 7(a) program are primarily used by small businesses to fund large startup expenses such as machinery and equipment. The 504 program helps business finance real estate and equipment needs.
— Microloan limits permanently increase to $50,000 from $35,000. These loans are primarily for funding larger entrepreneurs' startup costs and assisting business owners in underseved communities.
— Export Express loans increase to $500,000, from $250,000.
— SBA Express loans increase to $1 million, from $350,000 for one year.