Federal S. 3835/S. 3836.
In an attempt to make permanent the enhancements made to the SBA Surety Bond Guarantee Program through the American Recovery and Reinvestment Act (ARRA) of 2009, which are set to expire on September 30, Senator Ben Cardin (D-MD) offered an amendment to the Senate Small Business Jobs and Credit Act. The Senator’s amendment was not included in the Senate Small Business Jobs and Credit Act that was signed into law by the President on September 27.
The key provisions contained in this package included: increasing the SBA 7(a) loan limits from $2 million to $5 million and the SBA 504 loans from $1.5 million to $5.5 million, and microloans from $35,000 to $50,000. The bill also extends the ARRA small business lending program that eliminates the fees normally charged for loans through the SBA 7(a) and 504 loan programs and increases the government guarantees on 7(a) loans from 75% to 90%. NASBP has called upon Congress to make similar reforms to the SBA Surety Bond Guarantee Program, which we believe will further enhance the Program.
Additionally, Senator Cardin introduced a standalone bill (S.3835) which makes the increased surety bond
guarantee limits, of $5 million and $10 million, and the provision that allows the Administrator discretion to determine the Program’s liabilities permanent. S. 3835 was referred to the Senate Committee on Small Business and Entrepreneurship on September 23rd