By Caitlin Coakley
An extension of the Small Business Administration’s recovery lending program will loosen up more cash, but uncertainty persists over what will happen after the new deadlines.
On Thursday, the Obama administration extended deadlines that may allow for as much as $1.8 billion in small-business lending.
The program, said Dave Dillworth, acting district director of the North Carolina SBA, “is actually the only thing that has been motivating the loan volume increases we’ve seen since the beginning of the year.”
As part of the American Recovery and Reinvestment Act, passed in February 2009, the SBA received $730 million. Of those funds, $375 million was used to waive borrower fees on most 7(a) and 504 loans and increase the SBA guarantee on the 7(a) loans to 90 percent, reducing the risk to banks so they are encouraged to lend to small businesses.
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