Sept. 27, 2010, President Obama signed into law the Small Business Jobs Act, the most significant piece of small business legislation in over a decade. The new law will provide critical resources to help small businesses continue to drive economic recovery and create jobs.
The New Law Puts More Capital in the Hands of Entrepreneurs and Small Business Owners:
- SBA Enhanced Loan Provisions – $14 billion more in lending support
- The law extends SBA loan provisions (with the 90% guarantee and reduced fees) through Dec. 31. The $505 million in subsidy for Jobs Act loans will support about $14 billion in overall small business lending.
- Higher Loan Limits — significantly increases maximum loan sizes in top loan programs
- The law permanently increased 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).
- The law permanently increased microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.
- Alternative Size Standards — more small businesses eligible to get SBA loans
- The law expanded the number of small businesses eligible for SBA loans by increasing the alternate size standard to those with less than $15 million in net worth and $5 million in average net income.
- Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing
- The law increased the maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
- Dealer Floor Plan Pilot Extension, Expansion
- Small Business Intermediary Lending Pilot
Contact OneSource today to see how this affects your business.