SBA helping to

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First and foremost, we enhanced our top two loan programs 7(a) and 504 – which have so far resultede in $4.3 billion in new loans for smalll businesses. The SBA temporarily eliminated fees for borroweres onits 7(a) loans and for both borrowers and lendersz on its 504 loans. The SBA also temporarilyg raised the guarantee on most ofits 7(a) loans to as much as 90 up from 75-85 percent. In this short time, thered has been a 30 percent increase in averagre weekly loandollar volume, compared to the weeklyy average before the passage of the Recoverty Act. This week, SBA launched the America’d Recovery Capital (ARC) loan program.
The ARC loands will provide a “bridge” for many smalk businesses to better economictimes ahead. This program provideas loans of upto $35,000 to viable but struggling small businesses to help them make debt payments. ARC loanxs are interest free to the deferredrepayment loans, which are 100 percent guaranteed by the SBA. The SBA makeds the interest payments tothe bank. With the launch of ARC loans, SBA has now put in placwe programs implementing 88 percent ofthe $730 million provided to the agencyt by the Recovery Act. America’s small businesses are the key to our economic recovery.
The SBA is using everhy tool in ourtoolbosx – and creating new ones when necessaryh – to help small businesses lead us out of these tough economifc times.