tailieunhanh - Small Business Administration 7(a) Loan Guaranty Program

“The central purpose of the University of Virginia is to enrich the mind by stimulating and sustaining a spirit of free inquiry directed to understanding the nature of the universe and the role of mankind in it. Activities designed to quicken, discipline, and enlarge the intellectual and creative capacities, as well as the aesthetic and ethical awareness, of the members of the University and to record, preserve, and disseminate the results of intellectual discovery and creative endeavor serve this purpose. In fulfilling it, the University places the highest priority on achieving eminence as a center of higher learning.” . | Small Business Administration 7 a Loan Guaranty Program Robert Jay Dilger Senior Specialist in American National Government November 8 2011 Congressional Research Service 7-5700 R41146 CRS Report for Congress------------- Prepared for Members and Committees of Congress Small Business Administration 7 a Loan Guaranty Program Summary The Small Business Administration SBA administers several programs to support small businesses including loan guaranty programs designed to encourage lenders to provide loans to small businesses that might not otherwise obtain financing on reasonable terms and conditions. The SBA s 7 a loan guaranty program is considered the agency s flagship loan guaranty program. It is named from Section 7 a of the Small Business Act of 1953 . 83-163 as amended which authorized the SBA to provide business loans and loan guaranties to American small businesses. In FY2011 the SBA approved 53 706 7 a loans amounting to more than billion. Congressional interest in the 7 a loan program has increased in recent years because of increased concern that small businesses might be prevented from accessing sufficient capital to enable them to assist in the economic recovery. This report opens with a discussion of the rationale provided for the 7 a program the program s borrower and lender eligibility standards and program requirements and program statistics including loan volume loss rates use of the proceeds borrower satisfaction and borrower demographics. It then examines congressional action taken during the 111th Congress to help small businesses gain greater access to capital. For example in 2009 . 111-5 the American Recovery and Reinvestment Act of 2009 ARRA provided additional funding to temporarily subsidize the 7 a program s fees and to increase the program s maximum loan guaranty percentage to 90 . In 2010 . 111-240 the Small Business Jobs Act of 2010 provided additional funding to extend the 7 a program s fee subsidies and 90 .