Small Business Stimulus Funding Renewed

SBA Loan Fees will be paid by extended stimulus package to help create jobs.

From February 2009 through November 2009 the American Recovery and Reinvestment Act (ARRA) paid origination fees for SBA 504 programs giving small businesses a significant break on the loans they needed to fund new growth. Since funding ran out in late November, there has been a drastic decrease in volume for the Small Business Administration’s 504 loan program. Funding for the SBA Recovery Act was extended through February 2010 by Senate vote. This is important news for the almost 1,000 small businesses on a waiting list for about $500 million in SBA backed loans.

Sandy Bloem, executive director of Economic Development Foundation, applauded this extension and said ’this action by the Senate will clear the waiting list established by the SBA since the funding ran out in late November and continue the guarantee of fee waiver on 504 loans. These changes proved very effective at jump-starting small business lending and reduced the cost of capital for small businesses. Vital SBA lending programs are an important part of an overall economic recovery and job-creation efforts.”

Sandy Bloem is encouraging anyone considering utilizing a SBA 504 loan to get their application into the Economic Development Foundation (EDF) by mid-January to take advantage of the ARRA extension provisions. Call EDF with any questions about this process.
The Economic Development Foundation is a certified development company, with over 25 years of experience with the SBA 504 loan program. EDF is a non-profit company created to promote job creation throughout Michigan. EDF enjoys working with all types of businesses to start, build and grow their companies with an experienced team and a highly personal hands-on approach to lead customers through the loan process.

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