$21 Billion in Government Loans Available to Small Businesses

Legislation signed into law by President George W. Bush in early December 2004 makes more than $21 billion in loans available to small businesses. The budget gives the Small Business Administration (SBA) the capacity to support $16 billion in small business loans.

(PRWEB) February 4, 2005 -- A visit to http://SmallBusinessCenter.com will show how simple it is for small business owners to take advantage of these loan programs. The loan process is fairly simple. The small business owner submits a loan application to a participating lender for initial review. A copy of the application and a credit analysis are forwarded by the lender to the SBA. Following SBA approval, the lending institution closes the loan and disburses the funds.

Start-up and existing small business may use the loan proceeds to:
- expand or renovate facilities;
- purchase machinery, equipment, fixtures and leasehold improvements;
- finance receivables and augment working capital;
- refinance existing debt (under some circumstances);
- finance seasonal lines of credit;
- construct commercial buildings; and/or
- purchase land or buildings.

During the first quarter of fiscal year 2005, which began on Oct. 1, 2004, the SBA, through its private sector lending partners, approved 23,197 small business loans for $3.56 billion under its 7(a) business loan program. Through the first three months of fiscal year 2005, the 504 program had issued 1,780 business loans worth $882.9 million.

"This program set an all-time loan volume record last year." said SBA Administrator Hector V. Barreto. Women and minorities benefited from the record levels of small business loans in 2004. Overall, nearly a third of SBA-backed loans went to minorities. The number of loans to African Americans, Hispanics and Asian Americans rose to record levels, up 32% over last year for African Americans, up 31.7% over last year for Hispanics and up 33.7% over last year for Asian Americans. The number of loans to women increased 27.3% over 2003.

Since its founding on July 30, 1953, SBA has delivered about 20 million loans, loan guarantees, and other forms of assistance to small businesses. Congress created the SBA in 1953 to "aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns." Be sure to check out http://www.SmallBusinessCenter.com for more detailed information on how to take advantage of various government programs and services for small businesses.

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