It’s been a good week for small businesses. A backlog of Small Business Administration loans received final approval on Monday, clearing the way for nearly $970 million to flow where it’s needed.
Approvals were completed for 1,939 loans, SBA Administrator Karen Mills said in a press release. Some businesses had been waiting on the money for months while Congress dithered over the Small Business Jobs Act of 2010.
That was months when loan applicants weren’t creating new jobs or expanding their businesses.
Congress finally did the right thing — imagine that — and President Obama signed the act on Sept. 27. Among other things, the Small Business Jobs Act “provided funding for the extension of increased guarantees and reduced fees in SBA’s two largest loan programs,” according to the release.
The credit crunch has made access to capital a major problem for many small businesses. The SBA loans approved this week will make a big difference.
The Small Business Jobs Act also created the $30 billion Small Business Lending Fund, a vehicle for community banks to loan money to small businesses; and $12 billion in tax credits for small businesses.
The Act has its critics, but I’m sure the small businesses that need financial help could care less what politicians or pundits say.