Effective today, the SBA has permanently increased the 7(a) loan limit from $2 million to $5 million and 504 loans to $5.5 million through provisions under the new Small Business Jobs Act of 2010.
The changes are permanent for general small business loans under SBA's 7(a) guaranteed loan program, fixed asset loans through the 504 Certified Development Company program, microloans, and International Trade, Export Working Capital and Export Express loans.
The SBA said it also permanently increased microloan limits from $35,000 to $50,000, raised the limit on Export Express loans from $250,000 to $500,000, and made the program permanent. SBA Express loan limits have been temporarily raised from $350,000 to $1 million for one year, the agency said.
The Jobs Act also includes additional resources to help increase lending to small businesses, including the State Small Business Credit Initiative announced today by the Department of Treasury. It will support $15 billion in lending through local programs and the Small Business Lending Fund, which will provide capital to financial institutions to increase their lending efforts.
Additionally, the new law contains $12 billion in tax credits targeted to small businesses, including higher deductions for investing in new machines and equipment, zero capital gains for those who buy and hold small business stocks for five years, and a doubling of the maximum deduction for startups to $10,000. It also allows self-employed Americans to completely deduct health insurance costs for themselves and their families.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
