Markey Backs Small Business Loan & Job Creation Measure

Press Release

Pushes for greater access to small business capital during Small Business Week

Congresswoman Betsy Markey today announced her support for the Small Business Job Creation and Access to Capital Act, a measure that will help spur job creation and give a big boost to small businesses' ability to expand by modifying certain loan programs within the Small Business Administration.

"Small businesses are the backbone of America's economy, and so many of them have been hamstrung by this recession," said Rep. Markey. "Small businesses are where most Americans go to work every day, and they create 64% of the new jobs in our economy. Yet many are struggling to stay in business, much less expand. Raising Small Business Administration (SBA) loan limits will rush relief to small businesses that must keep relatively expensive product inventories. Higher limits will also help small manufacturers, hotels, restaurants, franchises and businesses all across Colorado. Getting more money into the hands of small businesses will encourage investment, stimulate expansion and create jobs."

Specifically, the Small Business Job Creation and Access to Capital Act will:

* Increase the loan limit on SBA 7(a) loans from $2 million to $5 million.

* Increase the loan limit on 504 loans for fixed assets -- buildings and equipment -- from $1.5 million to $5.5 million.

* Increase the loan limit on microloans from $35,000 to $50,000.

* Allow the 504 loans to refinance short-term commercial real estate debt into long-term, fixed rate loans.

* Extend the authorization to provide 90% guarantees on 7(a) loans and eliminate fees for borrowers on 7(a) and 504 loans through December 31, 2010.

* Direct the SBA to create a website where small businesses can identify lenders in their communities.

* With this legislation, SBA could increase small business lending by an estimated $5 billion in 2010 alone -- and it would be budget neutral.

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