With the American Recovery and Reinvestment Act now in effect since February 17th many Americans are anxiously awaiting to see how the bill will impact their lives.
As we posted a few weeks ago, we here at CCV were particularly interested to see what provisions were in the bill to help CDFIs and small businesses. The final legislation includes $100 million for CDFIs which is an enormous win for our sector. This legislation secures important funding for CDFIs and allows us to continue making an impact in the communities that need it most.
Further, the stimulus bill provides $730 million to the Small Business Administration (SBA) to begin unlocking credit markets and begin economic recovery for the nation's small business sector. The funding includes:
- $375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans
- $255 million for a new loan program to help small businesses meet existing debt payments
- $30 million for expanding SBA's Microloan program, enough to finance up to $50 million in new lending
Read more about the details of the funding provided to the SBA here.
President Obama has made a pledge to provide total transparency for the progress of the stimulus bill as well as to keep his administration accountable. The launch of Recovery.gov is intended to be the central resource for individuals to track this progress.
Here at CCV we are just as eager as you to get started on the road towards economic recovery and continue to offer our services to those small business owners who play such a critical role in that recovery. CCV Co-President, Susan Alnaqib provided her perspective on the new bill, "Given that small businesses are the engine for job creation, I think that funding for small businesses in the stimulus plan is vital if we are to get America working again. I'm thrilled to see this legislation pass."
We look forward to helping move the economy forward in our role as a CDFI.
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What do you think about the American Recovery and Reinvestment Act and its role in helping small business - we welcome you to weigh in through our comments section below!
