President Obama recently signed the FY16 Omnibus bill. Below is a statement from the Administrator of the U.S. Small Business Administration (SBA), Maria Contreras-Sweet.
“Coming out of one of the most successful and record breaking years for the SBA, I am encouraged by the FY16 Omnibus bill and the opportunities it will provide SBA moving forward,” says Contreras-Sweet. “This FY16 budget authorizes $26.5 billion for SBA’s flagship 7(a) Loan Program and $7.5 billion for the 504 (real estate and equipment) Loan Program. The growth in lending programs is indicative of the continued outreach and streamlining of program delivery, and importantly, operates at zero subsidy.
“In addition, the bill reinstated and made permanent SBA’s 504 Refinancing Program, a top priority for the agency. This refinancing program is a zero subsidy request and will help entrepreneurs unlock equity they already own in their businesses. Restructuring a loan under 504 Refi could provide better fixed-rates and more favorable terms on long-term debt, allowing small businesses to grow and create jobs.
“I’m very pleased that the bill raises the family of funds limit for the Small Business Investment Company (SBIC) program from $225 million to $350 million. The family of funds increase, coupled with SBIC’s $4 billion in authority, will better position the Agency to ensure that high-growth small businesses across the country have access to the capital they need to build their companies, drive innovation and help grow the economy. SBIC’s are privately organized and privately managed investment firms that are comprised of private equity, venture capital and structured lending funds that invest in American small businesses. Interest in joining the SBIC family has never been higher. Today we have over 300 licensed SBIC’s. The SBIC program is a true public-private partnership. Our government invests in our investors, and that gives us a leg up in the global economy.
“This budget supports SBA’s major business loan and capital access, contracting, and entrepreneurial development programs. With this funding, SBA will help tens of thousands of small business owners secure the financing necessary to start or expand their business. Additionally, SBA will be able to increase microloans and small dollar lending credit to credit worthy borrowers; promote inclusive entrepreneurship through targeted initiatives to ensure equal access to SBA services; offer unique training opportunities for transitioning service members and current veterans to pursue business ownership; expand entrepreneurial education programs; increase exporting opportunities for small businesses; provide disaster relief lending and facilitate access to over $80 billion in federal contracting.”Related Articles: