President Bush signs bill making more than $21 billion in loan
financing available; agency programs also reauthorized.
WASHINGTON - President George W. Bush today signed
legislation making more than $21 billion available to small businesses
through the SBA's two main loan programs. The legislation also
reauthorizes the agency's programs and provides a $580 million
budget for fiscal year 2005.
The SBA's flagship 7(a) loan guarantee program
was boosted to a $16 billion level, $3.5 billion above what the
program provided last fiscal year, when a record $12.55 billion
in financing was made to small business. Additionally, the government
loan guarantee increased from $1 million to $1.5 million and the
program will now operate without a congressional appropriation
or at zero subsidy, meaning that the program will be self-supported
through modest fees paid by lenders and borrowers.
An additional enhancement to the 7(a) program
was Congress' action to make the popular SBAExpress program permanent,
raising the maximum loan size to $350,000 with a 50 percent government
guarantee.
"I would like to thank Senator Frist, Speaker
Hastert and Small Business Committee Chairs Snowe and Manzullo,
and our banking partners for working with the administration to
strengthen the 7(a) program," said SBA Administrator Hector
V. Barreto. "This is an important win for small businesses
and will ensure long term stability to the program."
Congressional action included expanding the agency's
504 loan program up to the $5 billion level, and raising the maximum
loan size for manufacturers to $4 million. The 504 loans may be
used for the purchase of real estate, buildings and machinery.
Other highlights in the bill include $3.250 billion
for SBIC debenture financing and funding for the microloan and
HUBZone programs. The SBA's disaster program, instrumental in
the assistance provided after the rash of hurricanes this past
summer, previously received supplemental funding.
In the area of entrepreneurial development,
the Small Business Development, SCORE and Women's Business Centers
were reauthorized and funded at the same levels as last year.
The bill also provides funding for the veterans and Native Americans
programs.
"The SBA had a record breaking year in
the number of loans and technical assistance it provided to entrepreneurs
last year and we're poised to do even better this year, particularly
in our loan programs," Administrator Barreto said. "Under
President Bush's leadership, we will continue to move in a direction
of more efficient and effective delivery of our products and services.
In the long term this is good for the American taxpayer and for
small businesses."
