U.S. Chamber Hails Administration's Small Business Lending Plan

 
The U.S. Chamber applauded the administration's efforts to increase small business access to capital that will encourage job growth and help revive the U.S. economy.

"Although credit markets have improved, additional steps are necessary to increase lending to small businesses in order for them to play the vital role of job creation critical to jump-starting our economy," Chamber Executive Vice President for Government Affairs Bruce Josten wrote in an October 23 letter to Treasury Secretary Timothy Geithner and Small Business Administrator Karen Mills.

President Obama announced last week plans to increase the maximum amount businesses can borrow through the Small Business Administration's loan programs. Caps on SBA 7(a) loans will be increased from $2 million to $5 million, helping businesses invest in machinery, equipment, land, and buildings. SBA 504 loan caps will be increased to $5.5 million, up from the current $2 million. The administration also increased the maximum size of microloans that go to start-ups and other smaller businesses from $35,000 to $50,000.

The president also plans to increase access for smaller banks to the Troubled Asset Relief Program in an effort to spur more local lending by community banks. Under the plan, banks with less than $1 billion in assets who can show that they'll increase lending to small businesses will receive new capital at an initial dividend rate of 3%. The current rate is 5%.

"Ninety-six percent of the Chamber's members are small businesses with 100 employees or less. On behalf of these small businesses, the Chamber applauds your efforts to shore up lending for America's entrepreneurs and looks forward to working with the Administration and Congress on this effort," stated Josten in his letter.

Read White House fact sheet.