From the Denver Business Journal
See you in September — that’s the message Congress sent to small businesses looking for help in getting loans.
Before leaving Washington for its August recess, Congress failed to complete action on legislation that would make Small Business Administration loans more available and provide community banks with up to $30 billion in cheap capital for use in making small business loans.
Chances of the Small Business Jobs Act being enacted before September ended when the Senate failed to resolve a procedural dispute on the legislation before the House recessed July 30.
This means SBA lenders will go at least another month without a 90 percent government guarantee on the agency’s flagship 7(a) loans. That enhancement, an increase from the typical 75 percent guarantee, was created by the economic stimulus bill and expired June 1. The higher guarantee made SBA loans less risky for lenders.
Fee waivers on 7(a) loans and the SBA’s 504 loans, which are used primarily to finance real estate, also expired June 1. These breaks made the loans more affordable for small businesses.