SmallBusinessNewz

Today president Obama proposed the expansion of two SBA lending programs aimed at letting small businesses refinance and increase limits for working capital. Both legislative proposals are designed to help small businesses through a difficult period in credit markets, the White House says.

"The true engine of job creation will always be businesses," said President Obama. "What government can do is fuel that engine: by giving entrepreneurs and companies the support to open their doors, expand, and hire more workers. Today, we're taking another step towards assisting small business owners get the capital they need to grow and hire."

"These proposals will provide us with two effective tools to help small businesses meet specific challenges brought on by the recession," SBA Administrator Karen Mills said. "First, in the tight credit market of the last two years, lines of credits have been cut for small firms. Raising the limit on SBA Express loans to $1 million will mean more small business owners will have quicker access to this source of capital to help restock inventories and support larger revenue sales, and literally take that next step to grow their business and create new jobs. Second, thousands of good, creditworthy businesses find themselves caught by declining real estate values as a result of this recession. With many of them now facing mortgages coming due in the next few years, the ability to refinance into SBA’s 504 loan will give them the chance to lock in long-term, stable financing, as well as protect jobs by protecting small businesses from foreclosure."

The initiatives include expanding the SBA's existing program to temporarily support refinancing for owner-occupied commercial real estate loans and temorarily increasing the cap on SBA Express loans from $350,000 to $1 million.

More details about these initiatives can be found here.