Kenny Leonard

Kenny Leonard

In the recent article ‘Update on the Road to Recovery,’ the Michigan SBA Office provides an update on how recently legislation and funding to the SBA’s loan programs are impacting availability of funding in this current lending environment.

“It has been nearly 11 months since The American Recovery and Reinvestment Act was passed on February 17, 2009. As part of the ARRA, SBA received $730 million, which included $375 million to increase the SBA guaranty on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. These funds, which were instrumental in helping to jump-start the economic recovery for small businesses across the nation, ran out on November 23.”

USFC was an active member in this program and was able to help create or retain 567 jobs while funding $20 million in SBA loans.

“However, on December 19 President Obama signed the U.S. Department of Defense appropriations bill, which included $125 million to continue the enhancements to SBA’s loan programs through February 28, 2010. This is good news, as these provisions had a significant impact: our guaranty loans increased by 93% after the changes went into effect in mid-March.”

USFC continues to provide a critical level of lending throughout the communities we serve. The Defense appropriations bill that President Obama signed will enhance our ability to provide these loans at a much lower cost to our local business owners and entrepreneurs.

Read more of this article from the Michigan SBA office here. We encourage you to call Mike or me with any questions, comments, or concerns. Have a great week!

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