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.
