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Wednesday, November 25, 2009

Federal Stimulus Money For Small Businesses Has Dried Up

It's officially official. The Wall Street Journal is reporting that two popular stimulus provisions that were a part of the Recovery Act for small businesses has run out of funding.

The federal provisions raised the maximum guarantee on SBA loans to 90% from 75%, and temporarily reduced or eliminated fees associated with the loans. The move, orchestrated by the Obama administration, was widely credited with getting millions of dollars into the hands of small-business owners.

But apparently, the program has run it's course.

Now, lending experts are anticipating a drastic decrease in SBA loan volume unless Congress moves quickly to allocate more funds to renew the stimulus provisions. The House recently voted to continue the measures until September 2011, but the legislation has not yet moved forward in the Senate.

Meanwhile, needy small business owners are in limbo and are being forced to find other funding options.
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