The Senate voted this week to extend funding for certain SBA Recovery Act provisions through February.
"Small businesses have been left in limbo since the funding ran out in late November. [This] action by the Senate will immediately clear the waiting list established by the SBA and will provide a lifeline to small businesses in need of credit," said Sen. Mary Landrieu, D-La., in a statement.
"With these additional funds, SBA will be able to offer lenders a higher guarantee for 7(a) loans and a fee waiver on 504 loans, and reduce the cost of capital for small businesses by waiving the fees on both 7(a) and 504 loans," she added. "These changes proved very effective at jump-starting small business lending, and the need to continue them is clear. Since funds from the Recovery Act ran out in late November, we've seen the volume for 7(a) and 504 loans drastically decrease. Reinstating these funds is important to small businesses and our overall economic recovery and job-creation efforts."
In addition, the National Marine Manufacturers Association continues to work on expanding the SBA's dealer flooplan program.
To date, only a few marine dealers have been able to take part in the program.
Last week, 15 members of Congress wrote a letter to SBA administrator Karen Mills applauding SBA's decision to increase the size standards on businesses eligible to apply for lending assistance, including the Dealer Floorplan Initiative, the NMMA reports.
NMMA worked closely with the office of Rep. Chellie Pingree, D-Maine, on the letter, which urges SBA to make improvements to the floorplan initiative to make it more successful, including encouraging more participation by banks and lenders.
NMMA also submitted comments to the SBA outlining its support for the increased size standard and will continue to take steps to ensure that the program works better for marine businesses, the association reports.