The White House has raised the cap on small business loans.
It was officially announced that the implementation of the mentioned solution will facilitate the process of obtaining capital for underserved small businesses.
Last week, in a press release issued by the administration of United States President Joe Biden, it was noted that the Small Business Administration (SBA) had increased the maximum loan amount backed by its Community Advantage Small Business Lending Companies (CA SBLCs). The corresponding figure grew from $350,000 to $500,000 for active lenders with good standing.
The press release noted that the mission-based non-depository lenders are focused on providing access to capital for underserved and underinvested businesses. In this case, it is guaranteed that all consumer groups will have access to SBA-backed capital.
Last year in the United States, small businesses received a record $86 billion in subcontract awards from the federal government. Now the Office of Management and Budget (OMB) is expanding access to federal subcontracting opportunities.
OMB is issuing guidance to government agencies on how to expand subcontracting opportunities for small businesses, for which this is the main way to compete as prime contractors.
Last month, the media released information according to which the Federal Reserve’s pandemic-era Main Street Lending Program had $1.23 billion in interest and principal payments in default as of the end of October. Within the framework of this program, loans for $17.5 billion were delivered, most of which were repaid. At the same time, some borrowers are facing high interest rates, balloon payments, and changes in consumer behavior following the specified pandemic.
As part of the Main Street Lending Program, a total of 1,830 loans were issued in the amount of $100,000 to $300 million. This program was designed for medium-sized businesses that were too large to participate in the Paycheck Protection Program and too small to turn to capital markets.
As we have reported earlier, Real Estate Loans Provoke Doubts in Canadian Banks’ Profits.
