On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 (the “Small Business Jobs Act”). This legislation provided an additional $505 million to the Small Business Administration to support as much as $14 billion in lending to small businesses. These funds are available to provide fee relief for new 7(a) and 504 loans under Sections 501 and 502 of the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”). In addition, this legislation extends the authority for SBA to provide a higher guaranty on eligible 7(a) loans to December 31, 2010. On December 22, 2010 the agency released SBA Information Notice 5000-1190 to announce the further extension of this authority through March 4, 2011, as part of HR 3082, the Continuing Appropriations Act, 2011, and to provide related information.
In SBA Information Notice 5000-1188 (effective date December 9, 2010), SBA announced deadlines for submitting Small Business Jobs Act loan applications of December 15, 2010 (for loans submitted under non-delegated authority) and December 31, 2010 (for loans submitted under delegated authority). These deadlines were set assuming that SBA’s authority to make Small Business Jobs Act loans would expire, as scheduled, on December 31, 2010.
Since that announcement, SBA has seen an unprecedented increase in loan applications and approvals. During the week of December 12, SBA approved almost $1.5 billion in Small Business Jobs Act loans—the highest weekly volume since the agency began tracking weekly loan data, representing more loans approved in a single week than in an average month under the previously implemented Jobs Act loan enhancements.
As a result, the Transition Phase Indicator is now Yellow indicating the shrinking availability of funds and that the loan queue will be operational when funding runs out . Soon after the current funds are exhausted, the Transition Phase Indicator will be switched to Red indicating that no new applications are being accepted in the Loan Queues and loans already in the Loan Queues will be funded (as evidenced by receipt of an SBA loan number) as funds become available through cancellations of previously approved Small Business Jobs Act loans as long as authority remains to do so. The queue will change to Red when no new applications are being accepted under the Small Business Jobs Act.
The information on this web page and the links it contains will provide you with the information you will need to make an informed decision as to whether you want your loan application to remain in the SBA Loan Queue awaiting the possibility of funds becoming available as a result funding or you want to withdraw your application and re-submit it as a non- Small Business Jobs Act loan with all applicable fees and lower guaranty levels.
Read the entire article here: http://www.sba.gov/queue