President Obama Announces Proposal to Increase SBA Loan Limits

President Obama and the U.S. Small Business Administration announced October 21 a new plan to raise the maximum loan size for SBA-backed loans to small business. Specifically, President Obama called for:

• Increasing the size of SBA's 7(a) loan from $2 million to $5 million.
• Increasing the size of SBA's 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
• Increasing the size of SBA's Microloan from $35,000 to $50,000.

AGC believes these measures will go a long way to help extend and expand credit to small businesses that need this valuable help now more than ever.    To view a copy of the President's remarks, click here. To view the SBA fact sheet on the proposal, click here. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.