The SBA estimates the $40 million extension will support about $1.4 billion in small-business lending.
As part of the Recovery Act enacted on Feb. 17, 2009, the SBA received $730 million to help small businesses, including $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. The funds for these programs were exhausted on Nov. 23, 2009, and an additional $125 million was provided in December 2009. Those funds were exhausted in late February, and an additional $60 million was provided subsequently. That funding was exhausted late Friday.