Recent Changes in SBA Programs
Although the SBA has existed for over half a century, the agency is subject to frequent changes in funding and program policies. While these changes may affect the availability of SBA loan guarantees from time to time, the agency remains one of the best sources for assistance in obtaining financing for small businesses.
Here's an overview of the more significant recent trends in providing access to capital by the SBA during FY 2006 (the most recent period available):
- Guaranteed nearly 100,000 business loans to small businesses, doubling the number of loans since 2001.
- Nearly 35 percent of all SBA loan guarantees and 33 percent of the dollar volume went to minority-owned businesses, with 22 percent of our total to woman-owned businesses;
- Provided capital and credit to nearly 27,000 entrepreneurs in the first 10 months of FY 2006 to start a business, which exceeds our goal of 25,250 for FY 2006;
- Provided 2,565 export loan guarantees with a projected goal of 3,000 (value of $970 million) by September 30, 2006, contributing to a projected $1.75 billion in export sales.
The SBA's total budget request for FY 2007 of $624 million in net Budget Authority will support a total of $28 billion in financing to the U.S. small business community. The flagship 7(a) program requested $17.5 billion. SBA plans to fund loans to about 98,000 businesses. They also requested a $7.5 billion 504 program level and an SBIC Debenture program of $3 billion.
In the area of entrepreneurial development, the Small Business Development (SBDC),SCORE and Women's Business Centers (WBDC)were reauthorized and funded and in some cases the establishment of new centers was authorized.
The SBA guarantees as much as 85 percent on loans of up to $150,000 and 75 percent on loans of more than $150,000. In most cases, the maximum guaranty is $1 million. There are higher loan limits for International Trade, defense-dependent small firms affected by defense reductions, and Certified Development Company loans.
Several web sites have recently been created by the SBA to address special concerns of small businesses. These include one aimed at mitigating economic injury caused to a business by the callup of military reservists, and a site rendered in Spanish.
A new program called Patriot Express was initiated as a help to veterans and other military related people to launch new small businesses.
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