As small business people know, the Obama administration has spent its capital largely on Wall Street and neglected the real job creation engine of the U.S. economy: small business and loans to small business.
Scott Hauge, president of Small Business California and the Paul Revere of small business, has put out the SOS for people to contact Rep. Nancy Pelosi and Senators Diane Feinstein and Barbara Boxer and push them to help restore the critical funding programs for small business.
He sent along this Portfolio.com article for explanation:
Sba Runs Out Of Gas On 7a And 504 Loans
Capital - Portfolio.com
By Kent Hoover
It’s a blue Monday for small businesses and the lenders that make SBA loans.
The Small Business Administration no longer has enough economic stimulus funds to continue its 90 percent guarantee on its flagship 7(a) loans. It also will have to raise its fees on its 7(a) and 504 loans, which primarily finance real estate. As a result, beginning today, borrowers face a choice: They can be put on a waiting list to get the higher guarantee and lower fees on their loans if additional money becomes available; or they can apply for a regular SBA loan.