Jobs Act cuts loan fees for Vermont small businesses

first_imgOn September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 into law, putting more resources into the hands of small businesses so they can create more jobs and retain those they already have.  The Act will make a tangible difference to scores of Vermont businesses waiting in the US Small Business Administration’s loan queue. After the Recovery Act passed in February of last year, the SBA was able to help small businesses get Recovery loans by reducing or eliminating loan fees and increasing the SBA-backed guarantee to 90 percent.  When the funds for these loans were exhausted, SBA activated a Recovery Loan Queue as a sequential ‘holding tank’ for businesses interested in waiting for the availability of additional funds, either through the cancellation of previously-approved loans or through Congressional extension of Recovery Act programs.  With the Jobs Act in place, an additional $14 billion in SBA loan programs will be available to eligible small businesses once the agency receives its funding.  The Jobs Act will have an immediate impact on Vermonters waiting in the loan queue, one of whom is a Northeast Kingdom entrepreneur with a start-up loan of $750,000, and a fee savings of $23,625. Another Vermont business patiently waiting for his loan will be pleased to know he is saving nearly $5,000 in loan fees.  Thomas A. Coleman, DDS, of Brandon, Vermont said the purpose of his loan will be ‘to repay my accounts payable and to keep my employees on the payroll.’  Coleman has five part-time and four full-time employees.  In practical terms, the $5,000 he will save can be redirected towards working capital for any number of needs, such as purchasing equipment or retaining employees. The multi-faceted Jobs Act also makes a permanent increase to SBA’s maximum loan amount, from $2 million to $5 million.  ‘With the Act’s higher loan limits, higher size standards and reduced or eliminated fees, more of Vermont’s small businesses will now be eligible for and benefit from SBA loan program,’ said Darcy Carter, District Director, SBA Vermont District Office.Source: SBA. 10.1.2010last_img read more