The Small Business Administration has increased its loan cap for the remainder of the current fiscal year, which expires at the conclusion of this September. As it stands now, the program, which provides small businesses with working capital up to $5 million, has loaned $19.2 billion. This number represents roughly $3 billion more than the total for fiscal year 2014, and will likely increase before the close of the 2015 fiscal year.
A sign of economic recovery
This increase in loan quantity and volume is likely attributed to the strength and resurgence of our economy. Miguel Ayala, a spokesman for the SBA, says: “The amount of lending is way up. There is a positive economic sentiment, and small business owners are taking more risk and want to expand their businesses.”
Lending was previously capped at $18.75 billion for fiscal year 2015. The newly-announced cap of $23.5 billion will also be the initial cap request for fiscal year 2016, which begins this coming October. Additionally, these loans through the SBA’s 7(a) program generously provide the lending banks with up to an 85 percent guarantee.
If you currently own a small business, or are thinking of becoming an entrepreneur, being aware of how to most efficiently set up and run your venture is vital to sustained growth and success. Government funding is at your disposal, and can certainly be utilized if you know the proper steps to take.
At Kelley & Fulton, our attorneys have the knowledge and experience necessary to make sure your small business is off to a great start, and to help you monitor its progress with the utmost efficiency. Contact Kelley & Fulton to speak with a qualified business attorney in West Palm Beach today.