SBA loan provisions, with the 90% guarantee and reduced fees, were extended through 2010. The $505 million in subsidy for Jobs Act loans supported more than $12 billion in overall small business lending.
According to self-reported data, a significant share of Jobs Act loans went to rural (22%), minority-owned (21%), women-owned (16%) and veteran-owned (7%) businesses.
Higher Loan Limits – increased 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 more entrepreneurs with start-up costs and small business owners in underserved communities.
- The law temporarily increased the maximum amount of quick-turnaround SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
Alternate 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.
Temporarily Allow for Commercial Real Estate Refinancing
- Beginning in spring 2011, the law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).
Dealer Floor Plan (DFP) Pilot Program
- Building on the agency’s previous DFP pilot program, the new pilot will expand financing opportunities for small businesses that sell cars, RVs, boats, other titleable inventory (target rollout first quarter of 2011, effective through 2013).
Small Business “Intermediary” Lending Pilot
- The law provides for funding up to $20 million per year over the next three years for a pilot program that leverages local nonprofit organizations and other organizations that help small businesses that need loans up to $200,000 (target rollout mid-2011).