Small business loan breaks fall short of money

June 2nd, 2010 by James

Small business loan breaks fall short of moneyTwo of the most successful Small Business Administration (SBA) programs are about to run short of money again in midst of the federal government’s National Small Business Week.

It was announced by the SBA on Wednesday that it is opening up Recovery Loan Queue for the fourth time.

From money.cnn.com:

President Obama and many in Congress say they want the loan incentives extended for at least the rest of this fiscal year, which runs through September. But the two chambers of Congress haven’t yet agreed on legislation to do that. Result: A series of emergency bills that so far have kept the funds flowing, but only after several brief expirations.

“The stopping-and-starting is problematic,” said SBA spokesman Jonathan Swain. “It is a complicating factor for our lenders and our borrowers.”

When the funding pool starts to go dry, lenders scramble. Seacoast Commerce Bank, a community bank in Chula Vista, Calif., had pushed five SBA-backed loans through by midday Wednesday.

“It certainly puts a lot of strain on the whole process,” said David Bartram, an executive vice president in the bank’s SBA division.

Another extension is supported by members of both the House of Representatives and the Senate but it is not clear whether the legislation could make it before the Memorial Day break.

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