For fiscal year 2011, the SBA's proposed budget of $994 million aims to bolster the agency's 7(a) loan program and extend revolving lines of credit, commercial real estate loans and term loans.

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The 2011 budget provides $165 million in subsidy costs to support $17.5 billion in 7(a) loan guarantees. This includes an estimated $16 billion in term loans and $1.5 billion in revolving lines of credit, which are expected to support $39 billion in total economic activity through draws and repayments over the life of the guarantee, according to the SBA. The budget also requests legislation to increase the maximum sizes of 7(a) and 504 loans from $2 million to $5 million ($5.5 million for 504 manufacturing projects) and $50,000 for microloans.

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The agency's proposed budget also supports $7.5 billion in guaranteed lending for commercial real estate development and heavy machinery purchases, $3 billion in small business investment company debentures to support new businesses and new jobs through early-stage and mezzanine small business financing, and $25 million in direct microloans, for intermediaries to provide small loans to emerging entrepreneurs and "other promising but 'un-bankable' borrowers."

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