Small business stimulus loan money still on hold

6/27/2011

The Small Business Jobs Act of 2010 provided $30 billion in capital to community banks with less than $10 billion in assets to encourage lending to small companies.

This, combined with the Small Business Lending Fund which offers incentives to banks that provide loans, have revitalized the landscape.

"Necessity is the mother of invention, so people have been finding creative ways to get financing," said Steven Strauss Portland, Oregon-based author and business expert. "But it's actually a pretty good time to go out and get a business loan."

The SBJA raised loan limits on several lending programs. In the first quarter of 2011, the SBA average loan was up 20 percent, while overall loans saw a 13 percent spike, according to a March survey by the National Association of Development Companies.

Politico reports that so far, 844 institutions have applied for $11.6 billion from the SBLF. The loans from the government fund have yet to be sent out, however an official for the Small Business Lending committee tells the news source that the money will be dispersed before late September.