House Panel Says Stimulus Package Benefits Entrepreneurs
The House Small Business Committee is lauding provisions in the just-passed economic stimulus package. Its chairwoman, Rep. Nydia Velazquez (D-N.Y.), called it "a victory for struggling entrepreneurs."
* Reduce to zero fees on SBA-backed loans.
* Raise the percentage of a loan that the Small Business Administration may guarantee from 85 percent to 90 percent.
* Establish a new "Small Business Stabilization Financing Program" enabling the SBA to make no-interest loans to firms that are struggling to make payments on existing debt.
* Unfreeze the secondary market by allowing "broker-dealers" of SBA-backed loans to take out additional loans from SBA to purchase additional loans off banks' books. This will provide banks with liquidity and better ability to lend to small businesses.
* Allow SBA to guarantee existing debts in loan pools that are currently unguaranteed.
* Allow small businesses to refinance existing debts under the SBA's 504 program that offers growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings;
* Streamline the Small Business Investment Co. program to provide companies with equity capital to grow and create jobs.
* Require the Government Accountability Office to report to Congress on the implementation of the small business lending provisions in the stimulus.
* Provide $15 million to the SBA's surety bond program, including larger bonding authority, to help small firms obtain construction related projects.
* Provide $30 million for the SBA's microloan program, which provides loans and technical assistance for low income entrepreneurs and laid-off workers who are starting their own business.
The legislation is now being being reviewed by the Senate.
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Posted by: don25 | February 19, 2009 11:07 AM
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