Thanks to the Small Business Jobs Act, small businesses will receive immediate access to higher maximum loan amounts.
The Small Business Jobs Act allows the SBA to increase 7(a)—the most commonly used business loan, which guarantees a portion of loans provided by commercial lenders—504 and International Trade and Export Working Capital loan limits from $2 million to $5 million. Manufacturers and some energy-related projects can now receive loans of up to $5.5 million.
"Across the country, there are small business owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that," said Karen Mills, SBA Administrator.
Larger businesses with start-up costs and small business owners in underserved communities can benefit from the SBA's new microloan limits, which have increased from $35,000 to $50,000.
"The Small Business Jobs Act will have a profound impact on small businesses in this country, and the increased loan limits for SBA loans are just one example of how this bill is already helping our nation's small businesses turn our economy around," said Justin Nelson, president and co-founder of the NGLCC—a strong supporter of the Small Business Jobs Act throughout its passage.
Nelson noted that officials from the SBA would be participating in the Nov. 18-20 NGLCC National Business and Leadership Conference in Washington, D.C.
"Not only will attendees be able to get a better understanding of this year's health care reform law, but business owners will also be able to learn how to access credit to start or grow their enterprises as a result of the Small Business Jobs Act," Nelson said.
The NGLCC is also pleased with the bill's capital gains exclusion and increased start-up deductions provisions.
Under the Small Business Jobs Act, capital gains exclusions will temporarily increase from 50 to 100 percent for small business stock that is collected after the bill's enactment and held for more than five years. The bill will also temporarily increase the amount of deductible start-up expenditures from $5,000 to $10,000, subject to a $60,000 phase-out threshold.
"These are important provisions that will help millions of American small businesses—many of them LGBT-owned—and we look forward to sharing important information about access at our upcoming conference and through our communication channels such as BIZ," said Chance Mitchell, NGLCC co-founder and CEO.
For more information about the SBA's increased loan limits, click here.
Click here to learn more about the conference.
