Two federal agencies Friday said they had implemented crucial provisions of the newly enacted Small Business Jobs Act that will boost small-business loan limits and allocate funding to states for small-business lending.
The Small Business Administration said it has increased the maximum size of loans — to $5 million from $2 million — in several of its programs, including general small-business loans under the 7(a) program and fixed-asset loans through the 504 program.
The agency last week also began approving loans with higher loan guarantees and reduced fees, which were established under the stimulus bill and extended by the new law.
The agency said funding for the SBA would support $14 billion in new loans.
Also Friday, the Treasury Department announced that it has allocated funding under the State Small Business Credit Initiative — established by the law — which provides $1.5 billion for states to partner with local lenders on programs that help entrepreneurs expand their businesses and create jobs.
Under the program, states are required to demonstrate a minimum $10 in private lending for every $1 they receive in federal funding, for an expected $15 billion in new private lending.
