REPRESENTATIVE STERNER ENCOURAGES LOCAL BUSINESSES TO TAKE ADVANTAGE OF
EXPANDED FEDERAL LOAN OPPORTUNITY
Small Business Administration loan expansion to free up more than $4.5 billion for business owners
ST. PAUL, MN – In an effort to help revitalize America’s struggling economy, the U.S. Congress and President Obama recently freed up $4.5 billion more in needed lending for small businesses nationwide through an extension of the American Recovery and Reinvestment Act (ARRA). State Representative Phil Sterner is encouraging local entrepreneurs and small business owners to take advantage of the new Small Business Administration (SBA) loans to restore local business districts and get the state’s economy moving again.
“Minnesota’s small businesses are our state’s largest job creators,” said Sterner. “Their ability to withstand challenging economic conditions created by this recession will be one key to how quickly we will be able to begin and sustain a meaningful recovery. As a small business owner I see firsthand every day the challenge this recession has created for small businesses, so I know these important resources come at a critical time for Minnesota businesses and entrepreneurs.”
Extending the ARRA provisions related to SBA’s loan guarantee programs will provide additional funding for the SBA 7(a) and 504 loan programs, including temporary reduction of loan fees. The ‘emergency’ funding ($125 million) passed and signed will cover 7(a) and 504 loan fee reductions through February 28, 2010. New approvals of loans with the higher guarantee and reduced fees made possible by ARRA are expected to begin by December 28, 2010. Loan applications from borrowers who choose to be placed in the SBA’s Recovery Loan Queue will be funded first, followed by new loan approvals beginning on or before December 28, 2010.
“One of the biggest obstacles small businesses face is a lack of communication from government agencies about what resources are currently available to help their businesses,” said Rep. Sterner. “We need to do everything we can to connect Minnesota businesses with these resources. Businesses from other states will be competing for these loans. As state lawmakers we want to do everything possible to help Minnesota businesses get the upper hand.”
Sterner continued “By putting these loans to work in Minnesota communities, we give them a chance to hang on until the economy starts to turn around, and position them to thrive in ways that will help sustain our economy for the long term.”
Minnesotans seeking SBA loans for their businesses can find more information on the Small Business Administration website at: http://www.sba.gov/financialassistance/borrowers/guaranteed/. Rep. Sterner also encourages local business owners to contact him directly with any questions.
