President Barack Obama's fiscal year 2010 budget authorizes $28 billion in loan guarantees and an appropriation of approximately $700 million for the agency.
The spending cited in the proposal would be in addition to the $730 million funding provided for SBA credit programs in the recently enacted Recovery Act, the agency said. That act, which most spending is targeted for use in 2009 and 2010, authorizes SBA to raise guarantee percentages on some SBA loans to 90%, temporarily reduce fees on loans, expand funding for microloans, and raise the maximum size of SBA-guaranteed surety bonds.
The bill also sets a maximum of $17.5 billion for SBA's 7(a) loan program, $7.5 billion for the 504 certified development company loan program, $3 billion for the small business investment company debenture program and $25 million for the microloan program.
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The budget overview also includes the Obama Administration's Small Business and Community Bank Lending Initiative to expand small business credit availability and affordability by unfreezing secondary markets for small business loans as part of the larger plan to revive the flow of credit in the economy.
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