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The Recovery Act: SBA Loans and Your Small Business

by Caron_Beesley, Community Moderator

  • Created: August 18, 2010, 11:53 am
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Note: The ARRA (Recovery Act) initiatives and/or programs referenced in this article will expire on September 30, 2010. Any statements about qualifying time periods, or extensions of these dates, as they pertain to the availability of ARRA programs are over-ridden by the expiration of the Act on September 30, 2010.

During mid-March a flurry of announcements from the White House, U.S. Treasury, and the Small Business Administration (SBA) hailed the first measures being taken to address the economic challenges faced by small businesses and entrepreneurs across the country.

With access to credit and lending markets having practically dried up during the current economic crisis, small businesses, a sector that has created about 70 percent of all new jobs in the past decade, are now getting targeted help.

Here are some facts about what the American Recovery and Reinvestment Act (ARRA) means for small businesses at this point in time, as well as resources to help you find out more about how you can take advantage of the ARRA for your small business growth.

The Recovery Act and Small Business Loans

As a result of the Recovery Act, the SBA recently announced changes to its lending and investment programs that will make it easier and less expensive for more small businesses to get the financing they need.

The agency will receive $730 million in ARRA funds, the allocation of which is outlined on the SB;s Recovery Act Web portal here.

Specifically, small businesses can already benefit from two key provisions that were laid out in the Recovery Act - the temporary elimination of certain loan fees and the raising of guarantees on some 7(a) loans of up to 90 percent.

The elimination of loan fees, announced on March 16, will remain in effect until the end of the calendar year or until the funding is exhausted. The elimination of fees is retroactive to the day the Recovery Act was signed into law. (Note that the ARRA expires September 30, 2010, and will over-right any of these time periods or extensions).

SBA has published a Q&A about the new changes: Recovery Act Frequently Asked Questions for Small Business Owners.

Find Out how this Affects your Business

There are many events and seminars taking place in local business communities across the country to educate small business owners about these changes to SBA loan programs. These include:

  • In-Person Seminars

You can find out more by contacting your local SBA District Office, Small Business Development Center, Chamber of Commerce, or county government.

Many banks and lenders are also hosting sessions to help small businesses understand the implications of the Recovery Act on business financing.

Business.gov also regularly 'Twitters' about upcoming SBA-related seminars. Follow them @businessdotgov.

  • Web Events

There are also many online resources including the SB-s monthly Web chats, which invite questions from the small business community on topical matters.

  • Discussion Boards

You can also question industry experts and peers on what the Recovery Act means for small business on the business.gov Community message board dedicated to this topic here.

More details on the SB-s implementation of the Recovery Act funds will be coming over the next few weeks. Bookmark the SB's Recovery Act Web portal here for more updates.

Additional Resources

  • Recovery.gov - Read the ARRA, see how the money is being spent, and more.
  • Small Business Loans Guide from Business.gov - Information about the various small business loans available including loans for starting and expanding your business, disaster loans, export assistance loans, veteran and military community loans, and special purpose loans.
  • Loans and Grants Tool - Find loans and grants for your small business easily and quickly with this Loans and Grants Tool.

About the Author

Caron_Beesley's Profile Picture
Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley
Tags: Community Blogs, Small Business Matters

Comments

ramsharan | Performer | 10/26/2009 - 12:00 pm

It is true that the there is always a risk that our business can go down and we won't be able to pay money. -------------------------------- locksmiths Message Edited by NicoleD on 10-26-2009 09:37 PM
Professional Web Site: http://

angelperez | Performer | 2/4/2010 - 10:40 am

MR. gordon I happened to here your question to the president. Sir I was so impressed I had  to find out what your product was. Sir you have found one of most important simplest way to save our most important gift  (water) sir owen children and our childrens children's depend on people like you.the presidente commented you will succeed. He was right. By the and of today. My home will have your product on every faucet . My friends and family will also.your a men that's ahead of his time.thanks a gene keep up the good work.

angelperez | Performer | 3/23/2010 - 8:22 pm

MR. gordon I happened to here your question to the president. Sir I was so impressed I had  to find out what your product was. Sir you have found one of most important simplest way to save our most important gift  (water) sir owen children and our childrens children's depend on people like you.the presidente commented you will succeed. He was right. By the and of today. My home will have your product on every faucet . My friends and family will also.your a men that's ahead of his time.thanks a gene keep up the good work.

kris1911 | Performer | 3/23/2010 - 8:22 pm

Loan will help much to start small business but the only risk is if the business goes floap then we won't be able to pay money and we may loose our property also. But No pain no gain. So, this loan system for small business is really appriciated. Regards Nepali Forum Message Edited by NicoleD on 09-14-2009 05:15 PM
Professional Web Site: http://www.medost.com/forum/

STEVEGORDON | Window Shopper | 3/29/2009 - 1:33 am

EVERY SMALL BUSINESS OWNER SHOULD READ THIS: I own International Environmental Solutions, Inc. and have been in business for 18 years. The recession has crippled our company. Sales crashed and expenses continued and the result is that every bit of capital has been sucked out of our company. We are seriously struggling just to get by.   We manufacture the INSTANT-OFF, Automatic Faucet Control in St. Petersburg , Florida. The INSTANT-OFF replaces the aerator on any faucet and saves up to 10,000 gallons per year. The INSTANT-OFF also stops drippy and is sold in 1,950 Home depot's for $6.95   Twelve days ago we got our largest order ever from Home Depot and we don't have the money to manufacture the order.    I am desperate to get this order out but can't without money.   The first thing I did was go talk to my Bank (Bank of America) they couldn't help me at the branch. I asked about an emergency SBA loan and they couldn't help me either. They said they would have a business loan specialist call me but they never did. I called again but no return call. I  thought Congress gave Bank of America Billions of Dollars to start lending money. I can tell you it was an absolute waste of money...they are not qualified to solve the kind of credit crisis we have going on.  The small business credit crisis cannot be solved through the banks.   What needs to happen is the governament needs to hire laid off bankers to work for the SBA. Each bank needs to have an SBA loan officer available four hours a day to take and process small business loans. The banks are not capable of getting the job done.   Then I tried to raise money through the Angel Venture capital groups and got nowhere.   Then I tried to get a factor to lend money based on my $72,500 in purchase orders but they said it can only be done by one of three companies in America. I may get an approval this coming week and if I do the 60 day loan will cost me 6% that's 36% APR!!!!!!!!!   I am an American Small Business who makes a water conservation device that helps protect the environment and I NEED HELP!!!!   I sent seven emails to the President and have never gotten a response. I worked hard to get President Obama elected but he does not understand what is going on. WE ARE IN THE LARGEST CREDIT CRISIS EVER FOR SMALL BUSINESSES AND THERE IS NO HELP.  WE NEED HELP RIGHT NOW NOT NEXT WEEK!!!   We have been waiting...ever gets help except the people who can create jobs... No wonder that there have been very few jobs created.    My suppliers don't even have the money to buy materials to make my parts. I have to give them deposits because they got their credit lines cancelled.    There's immediate relief if your a Wallstreet firm or a Bank or American Express who got Billions...But what about us ??? America's Small Businesses ...need $35,000 to 50,000 RIGHT NOW to fill orders and hire employees!!!!   IS ANYONE LISTENING????????????   I am trying to move into a new facilty   My lease is ready to sign but I don't have the money to move into  our new facility. We are moving so we can hire Disabled Veterans to assemble and package our products. I can immediatley hire 7 Disabled Veterans and 3 additional people to work in our new warehouse but I don't have the money.    President Obama:    If you want to create jobs then provide America's small business the capital and we will create jobs. No capital--no jobs. When will you understand that the banks are broken? We, the small businesses of America are sick and tired of the attitude from the banks. We want to be able to go directly to the SBA fill out an application and meet with someone from the SBA who can help us. The Banks do not want to help. They are worthless.         I AM SO FRUSTRATED ---- I SPEND 100% OF MY TIME CHASING CAPITAL ---THIS IS RIDUICULOUS ..   I send several emails everyday but never get a response...   IS ANYONE LISTENING???????????   This situation can be quickly fixed. Hire more people for the SBA. Loan the money direct from the SBA to business. The sooner the Obama Administration realizes that the job is not going to get down by the banks the quicker we will recover from this recession.   Please go to my website ans see what we build www.instant-off.com   Steve Gordon President International Environmental Solutions, Inc. 800-972-8348      PLEASE COPY THIS EMAIL AND SEND IT TO PRESIDENT OBAMA    http://www.whitehouse.gov/contact/