Obama Looks to Expand Small Business Loans

Two lending programs connected to the Small Business Administration (SBA) have been targeted by Obama for expansion as job losses continue to mount in the ongoing recession.

The two new programs would be temporary expansions of the lending programs of the SBA, and would be for the purpose of helping small businesses in ongoing tight credit markets, as banks continue to hold back on lending.

One of the new programs will deal with under-girding the refinancing of commercial real estate loans which are occupied.

Secondly, caps on SBA Express loans will be increased on a temporary basis from $350,000 to $1 million.

Other proposal connected to the SBA include extending the Recovery Act which deals with raising guarantees on 7(a) loans while increasing the maximum sizes of major loans offered via SBA programs. Fees would also be eliminated in relationship to the loans originated through the programs.