The recently-passed Small Business Jobs Act created a $30 billion Small Business Lending Fund to provide community banks with capital to increase small business lending. U.S. Secretary of Commerce Gary Locke and U.S. Rep. Gary Peters hosted a roundtable discussion at the Detroit Regional Chamber to learn about some of the issues small business owners are facing in Michigan. Secretary Locke also shared some of the Department of Commerce's initiatives.
Loan Activity Increases under the Recovery Act
Enhancements to the U.S. Small Business Administration loan programs, made available under the American Recovery and Reinvestment Act, were a key factor in the rebound of SBA-backed loans for small businesses in fiscal 2010. SBA Michigan District Office statistics for the fiscal year show a strong increase in both dollar amounts and the number of loans compared to last year.
For fiscal 2010, SBA guaranteed 1,513 7(a) loans in Michigan for $385,893,000 compared to 1.133 loans for $236,516,000 in fiscal 2009. This is a 33% increase in the number of loans and a 63% increase in dollars. These loans were' provided by 113 lenders, a 25-year high.
The provisions of the Recovery Act that had the greatest impact in boosting loan activity were the temporary increase in the amount that-SBA can guarantee to 90% and the temporary elimination of fees to the borrower...