President Obama Proclaims May 15-21 National Small Business Week 2011; Small Businesses Help Put Country Back on Track

President Barack Obama [pictured] hailed small-business owners as the backbone of the nation’s economy in his proclamation of the week of May 15-21 as National Small Business Week. The President declared those men and women to be the embodiment of America’s promise: "The idea that if you have a good idea and are willing to work hard enough, you can succeed in our country."

The President’s proclamation was issued before the U.S. Small Business Administration’s 48th annual observance of National Small Business Week in Washington, D.C. [May 18-20]. The event honors outstanding entrepreneurs from across the country, and features announcement of the 2011 National Small Business Person of the Year, who is selected from among 54 small-business award winners from 50 states, D.C., Guam, Puerto Rico and the Virgin Islands.

The President’s proclamation states: "Our country started as an idea, and it took hard-working, dedicated, and visionary patriots to make it a reality. A successful business starts much the same way -- ideas realized by entrepreneurs who dream of a better world and work until they see it through. From the family businesses that anchor Main Street to the high-tech startups that keep America on the cutting edge, small businesses are the backbone of our economy and the cornerstones of America’s promise.

"Throughout our economic recovery, persevering small businesses have helped put our country back on track. Countless new and saved jobs have come from small businesses who took advantage of tax relief, access to capital, and other tools in the Recovery Act, the Small Business Jobs Act, and other initiatives launched by my Administration to put Americans back to work.

"To ensure the stability of our recovery, we must continue to provide new opportunities for small-business owners and the next generation of entrepreneurs, who will help us out-innovate and out-build our global competitors to win the future.

"To support high-growth businesses, my Administration has launched Startup America, an initiative that will strengthen access to capital and mentoring, while reducing barriers to growth for small businesses. Entrepreneurship is essential to the strength and resilience of our economy and our way of life. Startup America will give entrepreneurs the tools they need to build their business into the next great American company.

"To encourage innovation, we released the Strategy for American Innovation, a report outlining my Administration’s plan to harness ingenuity. This means investing in the building blocks of innovation -- like education and infrastructure -- while promoting market-based growth through tax credits and effective intellectual property laws.

"The National Export Initiative is working to open markets to American businesses and support small exporters, who increase American competitiveness abroad and create good jobs here at home. We continue to create opportunity for businesses in underserved communities through new lending initiatives, expanded access to counseling, and technical assistance.

"We are also working to provide small businesses more opportunities to compete for federal contracts. This gives federal agencies access to some of our country’s best products and services while helping these businesses grow and employ community members.

"Through these and other initiatives, we are supporting the entrepreneurs and small businesses that provide work for half of American workers, and create two out of every three new jobs.

"Small businesses embody the promise of America: that if you have a good idea and are willing to work hard enough, you can succeed in our country. This week, we honor and celebrate the individuals whose inspiration and efforts keep America strong."

The full text of the President’s National Small Business Week proclamation can be found at:
http://1.usa.gov/NSBW2011.

National Small Business Week 2011 will be highlighted with two-and-a-half days of events in Washington, D.C., at the Mandarin Oriental Hotel, where more than 100 outstanding business owners from across the country will be recognized. In addition to the State Small Business Persons of the Year, men and women involved in disaster recovery, government contracting, small-business champions, as well as SBA partners in financial and entrepreneurial development, will be honored.

Under the National Small Business Week 2011 theme of "Empowering Entrepreneurs," featured speakers include Sen. Jack Reed [D-R.I.]; Sen. Mary Landrieu [D-La.]; Valerie B. Jarrett, senior advisor to President Barack Obama; Steve Case, co-founder of AOL and chair of Startup America Partnership; Cathy Hughes, founder and chairperson of Radio One, and chair of SBA’s Council on Underserved Communities; SBA Administrator Karen Mills and SBA Deputy Administrator Marie Johns.

A complete agenda for the event is posted at http://bit.ly/AgendaNSBW. Also featured are a series of executive panel forums on Strategies for High Growth, Exporting and Social Media. The public can "attend" Small Business Week events virtually, via the SBA’s streaming video on the Web at http://bit.ly/WebcastNSBW.

Small Business Week 2011 co-sponsors include: Association of Small Business Development Companies, AT&T, AVAYA, CareerBuilder, Dun & Bradstreet, Google, International Franchise Association, Intuit, Lockheed Martin, Microsoft, National Association of Development Companies, National Association of Government Guaranteed Lenders, National Association of Small Business Investment Companies, National Association for the Self-Employed, National Small Business Association, Nomadic Display, Northrop Grumman, Office Depot, Raytheon, Sam's Club, SCORE, The Neat Company, Verio, Visa, the Wall Street Journal, and Women Impacting Public Policy.

SOURCES: U.S. Small Business Administration, The White House
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In Just Three Months, 2010 Jobs Act Supported More Than $12 Billion in SBA Lending to Small Businesses

Today, SBA Administrator Karen Mills [pictured] announced that, as of Dec. 31, the agency had approved more than $10.3 billion in loan guarantees, which supported more than $12 billion in lending to small businesses since President Obama signed the Small Business Jobs Act of 2010 on Sept. 27. The Jobs Act included an extension of reduced fees and higher-guarantee loan enhancements in the agency’s two largest loan programs.

In a just-released statement, Mills noted that SBA moved quickly to get these critical loan dollars in the hands of small businesses and, just three months later, all of the $505 million in subsidy provided in the Jobs Act to support the loan enhancements has been utilized by the agency’s national network of lending partners. In light of that, the SBA has activated the SBA Loan Queue to ensure that any remaining funds that result from loan cancellations in the coming weeks are redirected to new Jobs Act loans.

Following is the full statement from Mills:

"In just three months since the Small Business Jobs Act was signed into law, SBA supported more than $12 billion in lending to small businesses and entrepreneurs across the country. SBA is on the front lines with small-business owners and our lending partners every single day. I’m very proud that, as a result of those close relationships and partnerships, we were able to quickly put this significant amount of capital into the hands of our nation’s largest job-creation engine.

"The loan enhancements of higher guarantees and reduced fees first implemented as part of the Recovery Act have been a vital resource for tens of thousands of small businesses at a critical time when lending markets had dried up. Beginning in February 2009, these loan enhancements engineered a significant turnaround in SBA lending -- including driving record-high levels of SBA lending in recent weeks. The end result is that the agency helped put more than $42 billion in the hands of small businesses through the Recovery Act and Jobs Act combined.

"These enhancements have been a key piece of the Obama Administration’s efforts to help small businesses drive our nation’s economic recovery. As we transition back to our standard guarantees and fee rates, SBA loan programs will continue to play an important role -- as they have for decades -- in helping entrepreneurs and small-business owners start or grow their businesses and create jobs.

"The Small Business Jobs Act is the most consequential piece of legislation affecting small businesses enacted in more than a decade. While we are proud of how quickly SBA could provide $12 billion in capital to small businesses, we remain focused on implementing other key provisions of this law that will continue to expand access to capital; help small businesses compete for federal contracting dollars; strengthen small-business exports; and provide other critical support."

During the quarter, SBA approved nearly 22,000 small-business loans for $10.47 billion, supporting a total of $12.16 billion in lending. The amounts are greater than the volume for Jobs Act loans over the same period because they exclude some loans that were not eligible for one or more Jobs Act enhancements.

Background on SBA Loan Enhancements
SBA expands access to capital for small businesses by providing government guarantees on loans made by commercial lenders. The Small Business Jobs Act extended higher guarantees and reduced fees on its two most popular loan programs -- enhancements first enacted in the American Recovery and Reinvestment Act of 2009.

From Feb. 17, 2009 -- when the Recovery Act was signed -- through Sept. 30, 2010, the SBA approved more than $22.5 billion in loan guarantees, which supported more than $30 billion in lending to small businesses, due to the loan enhancements put in place by the Act. The enhancements were funded with approximately $680 million in subsidy funds provided during the period.

Following the extension of the enhancements in the Jobs Act, SBA approved an additional $10.3 billion in loan guarantees -- supporting more than $12 billion in lending to small businesses from Sept. 27 through Dec. 31, funded by just $505 million in subsidy funds.

The three-month extension of the loan enhancements under the Jobs Act financed the highest volume in a fiscal year’s first quarter than at any time in the agency’s history. During the week of Dec. 18-24 alone, SBA supported a record-high $1.95 billion in small-business loans -- the highest dollar volume since the agency began tracking its weekly loan volumes.

SBA Loan Queue
Authority to continue the loan enhancements was extended through March 4 by Congress last month. While there is no additional appropriation of subsidy funds to support the loan enhancements, the extended authority does allow the agency to redirect -- through the SBA Loan Queue -- any dollars that come available from loan cancellations in the coming weeks to new loans with the enhancements.

It is typical that some previously approved loans are later cancelled by the borrower or lender and never disbursed for a variety of reasons. The queue takes this into account and will allow eligible small businesses, in consultation with their lenders, to choose to be placed in the queue for possible approval for a Jobs Act loan if funding becomes available.

Small-business owners and lenders will have transparent access to the queue via http://www.sba.gov/ and will be able to remove themselves from the queue at any time to be considered for a non-Jobs Act SBA-backed loan with all applicable fees and, for 7[a] loans, standard guarantee levels.

Small Business Jobs Act of 2010
The Small Business Jobs Act included an array of provisions aimed at helping small businesses gain access to capital, compete for federal contracting opportunities, expand exporting opportunities, and obtain other assistance to help them grow and create jobs. More information on the Jobs Act can be found at www.sba.gov/jobsact.

SOURCE: U.S. Small Business Administration
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SBA Renews Popular Patriot Express Loan Initiative for Three More Years

A very popular initiative that, in just three-and-a-half years has provided more than $560 million in loan guarantees to nearly 7,000 veterans to start or expand their small businesses, is being renewed for three more years, according to the U.S. Small Business Administration.

Patriot Express, a streamlined pilot loan product based on the agency’s SBA Express program, offers an enhanced guaranty and interest rate on loans to small businesses owned by veterans, reservists and their spouses. Over the past two years, due in part to the American Recovery and Reinvestment Act, loan volume increased dramatically.

"America’s veterans have the leadership skills and experience to become successful entrepreneurs and small-business owners," said SBA Administrator Karen Mills. "The impact of this program over the last three-and-a-half years has meant thousands of veterans and their families have had the resources to pursue their dreams as entrepreneurs and, at the same time, create jobs and drive economic growth at a critical time for our country.

"Renewing it means we can continue to fulfill our sacred commitment to the men and women who serve our country by giving them every opportunity for success."

Patriot Express was launched June 28, 2007, to expand upon the more than $1 billion in loans SBA guarantees annually for veteran-owned businesses across all its loan programs. SBA also offers counseling assistance and procurement support each year to more than 200,000 veterans, service-disabled veterans, reservists, and members of the National Guard and their spouses.

Patriot Express loans are offered by SBA’s network of participating lenders nationwide and feature one of SBA’s fastest turnaround times for loan approvals. Patriot Express loans are available for up to $500,000.

The Patriot Express loan can be used for most business purposes -- including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Local SBA district offices can provide lists of Patriot Express lenders in their areas. Details on the initiative can be found at www.sba.gov/patriotexpress.

To learn more about additional opportunities for veterans available through the SBA, please visit the website at www.sba.gov/vets.

SOURCE: U.S. Small Business Administration
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SBA Loan Queue Cleared One Week After President Obama Signs Jobs Act

All of the loan applications placed in the U.S. Small Business Administration’s loan queue by small-business borrowers have received final approval, SBA Administrator Karen Mills announced today. The approvals, which were completed Monday, amount to 1,939 loans for nearly $970 million.

Final approval follows President Obama’s signing of the Small Business Jobs Act of 2010 on Sept. 27, which provided funding for the extension of increased guarantees and reduced fees in SBA’s two largest loan programs. Small-business owners have been waiting for additional funding and putting applications in the queue since the end of May, when authority for higher loan guarantees expired and, soon after, previous Recovery loan funding was exhausted.

Of the approvals in the queue, SBA approved more than $586 million through 1,273 new loans with funds provided by the Small Business Jobs Act, and 666 loans for more than $383 million with earlier funding that became available after cancellations of applications that had been approved previously under Recovery Act loan terms -- most, because they had been withdrawn by the applicants.

"Enhancements first made under the Recovery Act have made SBA-backed loans a key source of much-needed capital for tens of thousands of small-business owners, helping them not just keep their doors open, but also grow and create jobs all across the country," said Mills.

"Beginning in May, we saw the SBA loan queue begin to grow, which was evidence of both the continued need for these tools and the challenges small-business owners face in getting loans," Mills noted. "Within days of the President’s signature, the authority and the funding provided in the Small Business Jobs Act have allowed us to clear out our loan queue and begin getting capital in the hands of the more than 1,900 small-business owners who had been waiting -- some, for most of the summer."

Mills pointed out that the Small Business Jobs Act will support an estimated $14 billion in lending with only $505 million in taxpayer funds -- including many of the loans approved from the queue.

The loan enhancements for SBA-backed financing were key incentives in helping revive the availability of capital for small businesses after the credit crunch in late 2008 and early 2009. The increased guarantees and reduced fees in SBA’s two largest lending programs sparked a significant turnaround in SBA lending and have been instrumental in helping jump-start the economy for small businesses.

From the passage of the Recovery Act in February 2009 through the end of September, these incentives for borrowers and lenders helped support nearly $30 billion in SBA-backed loans to nearly 70,000 small businesses.

The SBA re-opened its loan queue in May, when funding for the incentives was nearly exhausted. Small-business loan applicants who wanted the benefits of the incentives could choose to place their loan in the queue to await funding from either an extension of the enhancements by Congress, or funds coming available as a result of cancellations of previously approved Recovery loans.

By the time President Obama signed the Small Business Jobs Act on Sept. 27, more than 1,400 "conditionally" approved small-business loan applications were in the queue’s waiting list -- with more than 500 more choosing to go into the queue by Oct. 1. With funds provided in the Small Business Jobs Act, SBA began making "final" approval of remaining loans in the queue on Oct. 1.

SOURCES: Library of Congress, U.S. Small Business Administration
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President Obama Signs Small Business Jobs Act; Here's What's in It

"I’m thrilled to be here on what is an exciting day," said President Obama as he prepared to sign the Small Business Jobs and Credit Act of 2010 [H.R. 5297] this afternoon. With small-business owners who will receive tax breaks and better access to credit in the audience, the President explained to everybody why he has fought so long for it:

"Now this is important because small businesses produce most of the new jobs in this country," he noted. "They are the anchors of our Main Streets. They are part of the promise of America: the idea that, if you’ve got a dream and you’re willing to work hard, you can succeed.

"That’s what leads a worker to leave a job to become her own boss. That’s what propels a basement inventor to sell a new product, or an amateur chef to open a restaurant. It’s this promise that has drawn millions to our shores and made our economy the envy of the world."

The bill includes a series of small-business proposals that the President put forth earlier this year, and small businesses will start benefiting from the bill on Day 1. Among the many important provisions in the bill, 12 of the top benefits to small businesses are:

* Extension of Successful SBA Recovery Loan Provisions -- Immediately Supporting Loans to More 1,400 Small Businesses: With funds provided in the bill, SBA will begin funding new Recovery loans within a few days of the President’s signature, starting with the more than 1,400 businesses -- with loans totaling more than $730 million -- that are waiting in the Recovery Loan Queue. In total, the extension of these provisions provides the capacity to support $14 billion in loans to small businesses. The SBA Recovery loan provisions have already supported $30 billion in lending to over 70,000 small businesses.

* More Than Doubling of the Maximum Loan Size for the Largest SBA Programs: The bill also increases the maximum loan size for SBA loan programs which, in the coming weeks, will allow more small businesses to access more credit to allow them to expand and create new jobs. The bill will permanently raise the maximum size for SBA’s two largest loan programs -- increasing the maximum 7[a] and 504 loans from $2 million to $5 million, and the maximum 504 manufacturing-related loan from $4 million to $5.5 million. In addition, it will temporarily increase the maximum loan size for SBA Express loans from $350,000 to $1 million -- providing greater access to working capital loans that small businesses use to purchase new inventory and take on their next order, allowing them to create new jobs.

* A New $30 Billion Small Business Lending Fund: The bill would establish a new $30 billion Small Business Lending Fund which, by providing capital to small banks with incentives to increase small business lending, could support several multiples of that amount in new credit.

* An Initiative to Strengthen Innovative State Small Business Programs -- Supporting Over $15 Billion in Lending: The bill will support at least $15 billion in small-business lending through a new state Small Business Credit Initiative, strengthening state small-business programs that leverage private-sector lenders to extend additional credit -- many of which have been forced to cut back due to budget cuts.

* Eight New Small Business Tax Cuts -- Effective Today, Providing Immediate Incentives to Invest: The President had already signed into law eight small-business tax cuts. Today, he is signing into law another eight new tax cuts that go into effect immediately.

* Zero Taxes on Capital Gains from Key Small Business Investments: Under the Recovery Act, 75 percent of capital gains on key small-business investments this year were excluded from taxes. The Small Business Jobs Act temporarily puts in place for the rest of 2010 a provision called for by the President: elimination of all capital gains taxes on these investments if held for five years. Over one million small businesses are eligible to receive investments this year that, if held for five years or longer, could be completely excluded from any capital gains taxation.

* Extension and Expansion of Small Businesses’ Ability to Immediately Expense Capital Investments: The bill increases for 2010 and 2011 the amount of investments that businesses would be eligible to immediately write off to $500,000, while raising the level of investments at which the write-off phases out to $2 million. Prior to the passage of the bill, the expensing limit would have been $250,000 this year, and only $25,000 next year. This provision means that 4.5 million small businesses and individuals will be able to make new business investments today and know that they will earn a larger break on their taxes for this year.

* Extension of 50% Bonus Depreciation: The bill extends -- as the President proposed in his budget -- a Recovery Act provision for 50 percent "bonus depreciation" through 2010, providing two million businesses, large and small, with the ability to make new investments today and know they can receive a tax cut for this year by accelerating the rate at which they deduct capital expenditures.

* A New Deduction of Health Insurance Costs for Self-Employed: The bill allows two million self-employed to know that, on their taxes for this year, they can get a deduction for the cost of health insurance for themselves and their family members in calculating their self-employment taxes. This provision is estimated to provide over $1.9 billion in tax cuts for these entrepreneurs.

* Tax Relief and Simplification for Cell Phone Deductions: The bill changes rules, so that the use of cell phones can be deducted without burdensome extra documentation -- making it easier for virtually every small business in America to receive deductions that they are entitled to, beginning on their taxes for this year.

* An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses: The bill temporarily increases the amount of start-up expenditures that entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 [with a phase-out threshold of $60,000 in expenditures], offering an immediate incentive for someone with a new business idea to invest in starting up a new small business today.

* A Five-Year Carryback of General Business Credits: The bill would allow certain small businesses to "carry back" their general business credits to offset five years of taxes -- providing them with a break on their taxes for this year, while also allowing these credits to offset the Alternative Minimum Tax, reducing taxes for these small businesses.

* Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business: The bill would change, beginning this year, the penalty for failing to report certain tax transactions from a fixed dollar amount -- which was criticized for imposing a disproportionately large penalty on small businesses in certain circumstances -- to a percentage of the tax benefits from the transaction.

GoodBiz113's Take: After months of stall tactics -- by too many mean-spirited, just-say-no House Republicans who don't want this country to succeed under President Obama's Administration, regardless of how logical its proposed policies are -- the Small Business Jobs and Credit Act of 2010 is finally in place. Here's to moving forward -- for current and would-be small-business owners and the greater good... Cheers!

SOURCES: Internal Revenue Service, Library of Congress, U.S. Small Business Administration, The White House
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SBA’s Economic Recovery Efforts and Impact Top $29.4 Billion

The U.S. Small Business Association [SBA] received $730 million in the American Recovery and Reinvestment Act [ARRA] to help unlock the small business-lending market and get capital flowing again to America’s small businesses. Due to the success of these programs, the SBA received an additional $305 million to continue several ARRA programs.

SBA Recovery Efforts -- Impact to Date
* SBA Has Supported More Than $29.4 Billion in Recovery Loans to Small Businesses: As of July 30, SBA had supported $29.4 billion-plus in small-business lending, with the approval of $22.1 billion in Recovery loans since Feb. 17, 2009. From ARRA's inception on Feb. 17, 2009, to July 30, 2010, weekly SBA loan-dollar volumes rose more than 90 percent in the 7[a] and 504 loan programs, compared to the weekly average before passage.

* Broad Support to Businesses: A significant share of Recovery loans have gone to rural [24 percent], minority-owned [21 percent], women-owned [18 percent], and veteran-owned [8 percent] businesses.

* Secondary Markets Uptick with 7[a] Loans: After months of reduced activity and lower premiums, the SBA 7[a] secondary market is picking up, and premiums are beginning to recover. Over the past 13 months, the average monthly loan volume settled from lenders to broker-dealers in the 7[a] secondary market has been $342 million, providing lenders with additional liquidity to increase lending.

* America's Recovery Capital [ARC] Loans Helping Small Businesses: As of July 30, SBA had approved 8,130 ARC loans -- totaling over $263.3 million by 1,278 lenders -- to help small businesses make it through this tough economy.

SBA Recovery Programs
To date, SBA has implemented programs for all of the $730 million in SBA Recovery Act funding -- plus an additional $305 million provided in December, February, March, and April -- for the agency’s lending programs, including:

* Eliminating and reducing fees for borrowers on 7[a] loans, and for borrowers and lenders on 504 loans;

* Raising to 90 percent the guarantee on 7[a] loans -- from 75 or 85 percent, depending on the size of loan;

* Doubling the surety bond guarantee from $2 million to $5 million, thus providing small businesses with another tool to help them compete for federal construction and service contracts;

* Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred-repayment loans of up to $35,000 to viable businesses to help them make debt payments;

* Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation;

* Expanding access to investment capital for small businesses, by increasing funding levels for SBA-licensed Small Business Investment Companies [SBICs]; and

* Taking steps to ensure the stability of the secondary market for SBA loans.

The SBA has also implemented two new programs that complement the ARRA measures and increase access to capital for small businesses by:

* Expanding 7[a] loan eligibility to more than 70,000 small businesses through a temporary alternate size standard; and

* Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.

To learn more about how SBA and the Recovery Act are helping small businesses succeed throughout America, go to: http://bit.ly/SuccessStoriesSBA.

SOURCE: U.S. Small Business Administration
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President Obama Hails Auto Industry Successes, Calls on Senate Republican Leaders to 'Stop Holding America's Small Businesses Hostage to Politics'

In this week's address -- delivered from the General Motors automobile assembly plant in Detroit/Hamtramck, Mich. -- President Barack Obama praised the successes of the auto industry's restructuring. When his Administration decided to invest in the American car companies, some said such a move was bound to fail. But since GM and Chrysler have emerged from bankruptcy, the auto industry has added 55,000 jobs -- the strongest growth in 10 years -- and, for the first time since 2004, all three companies are operating at a profit.

The President also called on Republican leaders in the Senate to stop blocking a vote on a bill helping small businesses. Even though this bill will help the nation's recovery, and has been endorsed by groups such as the Chamber of Commerce and the National Federation of Independent Business [NFIB], the Republican Senate leadership continues to hold it hostage to politics by denying an up-or-down vote on the bill.

To view the video of President Obama's weekly address, go to: http://bit.ly/Video07312010

To read the transcript of the President's weekly address, please visit: http://bit.ly/Transcript07312010

To learn more about H.R. 5297 -- The Small Business Jobs and Credit Bill of 2010, go to: http://bit.ly/HR5297

SOURCES: Library of Congress, The White House [photo by Pete Souza]
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President Obama on Clean Energy: ‘We Could Have as Much as 40 Percent of the World’s Market by 2015’

Today, President Barack Obama spoke with workers at Smith Electric Vehicles' new factory in Kansas City, Mo. With a $32 million grant under the American Recovery and Reinvestment Act [ARRA], coupled with $36 million in private capital, the electric-vehicle company is building up to 500 all-electric trucks.

While he was there, the President [pictured above with Smith Electric executives] also had the pleasure of announcing the company was hiring its 50th worker at the plant. By September, that number is expected to grow to 70 and, at the project’s peak, Smith says the project will create more than 220 direct and indirect jobs.

"Just a few years ago, America had the capacity to build only about two percent of the world’s advanced batteries for electric and hybrid vehicles like Smith’s -- two percent, that was it," President Obama told a crowd of Smith Electric employees and guests. "We account for 25 percent of the world’s economy, and we were only making two percent of the world’s advanced batteries.

"But, thanks to our new focus on clean energy and the work that’s taking place in plants like this one, we could have as much as 40 percent of the world’s market by 2015 -- five years. That means jobs. But that also means we’re going to have an expertise in a sector that’s just going to keep on growing all around the world for years to come. So, all these efforts taken together are making a difference."

The story of Smith’s factory shows the direct and measurable impact of the Recovery Act. Smith’s factory is repurposing an 80,000-square-foot jet-engine overhaul facility at the Kansas City International Airport -- a space that was not being utilized or creating jobs is now a fully operational plant.

Along with creating new jobs and breathing life back into this facility, this project is helping demonstrate that electric-drive cars and trucks are real. Fleet customers like Coca-Cola and AT&T will test the vehicles, realizing they can save money over diesel-powered trucks with lower fuel costs.

Without government-supported demonstrations, these companies would likely have waited years before testing a new technology -- especially during an economic downturn. Like any technology, these first demonstrations will help lower the cost, as companies perfect the manufacturing assembly processes and begin operating on a larger, more cost-efficient scale.

Proposed "Green Impact Zone" Would Fuel Sustainability in Kansas City Community
Smith Electric’s story is only one piece of a much broader Recovery Act puzzle unfolding in the Kansas City area. Early this year, Rep. Emanuel Cleaver [D-Mo.] developed a plan for a Green Impact Zone to be established in a 150-block area in the city. The goal is to create a sustainable community -- i.e., one that is environmentally, economically and socially stronger tomorrow than it is today.

Here are a few of the highlights:

* Weatherization: In Kansas City, stimulus funds have been used to finish weatherization work at almost 200 residences in the last few months.

* Energy Efficiency: Kansas City will use its community block grant funds to undertake a number of projects to enhance energy efficiency across the city -- including energy-efficiency upgrades of several major buildings. The city anticipates these activities to create or retain more than 200 jobs.

* Modernizing the Electric Grid: Kansas City Power and Light won a $24 million grant to support a $48 million smart grid demonstration project.

* Science and Innovation: Kansas City-based EaglePicher Corporation, in partnership with the Pacific Northwest National Laboratory, won a $7.2 million ARPA-E award to develop a new generation of high-energy, low-cost planar liquid sodium beta batteries for grid-scale electrical power storage applications.

* Advanced Vehicle Technology: The Metropolitan Energy Center’s Midwest Region Alternative Fuels Project was awarded nearly $15 million as part of the Clean Cities program to develop 27 alternative-fuel stations, and deploy 373 alternative-fuel and advanced-technology vehicles.

Through collaboration with industry leaders, nonprofits, universities, and federal/state/local-government leadership, Smith Electric and Kansas City are demonstrating the opportunities for communities across the country to develop a clean and renewable-energy economy.

"My answer to those who don’t have confidence in our future -- who want to stop -- my answer is, come right here to Kansas City," President Obama noted towards the end of today's remarks. "Come see what’s going on at Smith Electric. I think they’re going to be hard-pressed to tell you that you’re not better off than you would be if we hadn’t made the investments in this plant."

To read the full text of remarks that President Obama made today regarding the economy and the success of Smith Electric Vehicles and other young green-energy small businesses and initiatives, go to: http://bit.ly/ObamaSmithElectric.

For more information on the Recovery Act’s work in Missouri, please visit the Department of Energy's website: http://bit.ly/MissouriRecoveryAct.

To learn more about how clean-energy small businesses are helping to drive our nation's economy forward, go to: http://bit.ly/SmallBizCleanEnergy.

SOURCES: U.S. Department of Energy, The White House [photo by Pete Souza]
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SBA-Backed Loans to Small Businesses Top $29.3 Billion, Thanks to Recovery Act Funding

The U.S. Small Business Association [SBA] received $730 million in the American Recovery and Reinvestment Act [ARRA] to help unlock the small business-lending market and get capital flowing again to America’s small businesses. Due to the success of these programs, the SBA received an additional $305 million to continue several ARRA programs.

SBA Recovery Efforts -- Impact to Date
* SBA Has Supported More Than $29.3 Billion in Recovery Loans to Small Businesses: As of July 2, SBA had supported $29.3 billion-plus in small-business lending, with the approval of $22 billion in Recovery loans since Feb. 17. From Feb. 17, 2009, to July 2, 2010, weekly SBA loan-dollar volumes rose more than 90 percent in the 7[a] and 504 programs, compared to the weekly average before passage.

* More Lenders Making Loans: From Feb. 17, 2009, to June 25, 2010, more than 1,363 lenders who had not made a loan since at least 2007 made a 7[a] loan.

* Broad Support to Businesses: A significant share of Recovery loans have gone to rural [24 percent], minority-owned [21 percent], women-owned [18 percent], and veteran-owned [8 percent] businesses.

* Secondary Markets Uptick with 7[a] Loans: After months of reduced activity and lower premiums, the SBA 7[a] secondary market is picking up, and premiums are beginning to recover. Over the past 13 months, the average monthly loan volume settled from lenders to broker-dealers in the 7[a] secondary market has been $342 million, providing lenders with additional liquidity to increase lending.

* America's Recovery Capital [ARC] Loans Helping Small Businesses: As of July 2, SBA had approved 7,925 ARC loans -- totaling over $256.6 million by 1,268 lenders -- to help small businesses make it through this tough economy.

SBA Recovery Programs
To date, SBA has implemented programs for all of the $730 million in SBA Recovery Act funding, plus an additional $305 million provided in December, February, March, and April for the agency’s lending programs -- including:

* Eliminating and reducing fees for borrowers on 7[a] loans, and for borrowers and lenders on 504 loans;

* Raising to 90 percent the guarantee on 7[a] loans -- from 75 or 85 percent, depending on the size of loan;

* Doubling the surety bond guarantee from $2 million to $5 million, thus providing small businesses with another tool to help them compete for federal construction and service contracts;

* Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred-repayment loans of up to $35,000 to viable businesses to help them make debt payments;

* Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation;

* Expanding access to investment capital for small businesses, by increasing funding levels for SBA-licensed Small Business Investment Companies [SBICs]; and

* Taking steps to ensure the stability of the secondary market for SBA loans.

The SBA has also implemented two new programs that complement the ARRA measures and increase access to capital for small businesses by:

* Expanding 7[a] loan eligibility to more than 70,000 small businesses through a temporary alternate size standard; and

* Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.

To learn more about how SBA and the Recovery Act are helping small businesses succeed throughout America, go to: http://bit.ly/SuccessStoriesSBA.

SOURCE: U.S. Small Business Administration
____________________

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SBA’s Patriot Express Pilot Loan Initiative Delivers Nearly $500 Million to 6,000 Veterans, Military Community

In just three years’ time, the U.S. Small Business Administration’s Patriot Express Pilot Loan Initiative has supported nearly $500 million in Patriot Express loans to small businesses owned and operated by veterans, reservists and their spouses.

Patriot Express loans, which can be used to start or expand a small business, increased over the past two years due in part to the American Recovery and Reinvestment Act [ARRA], which raised loan guarantees to 90 percent, and temporarily eliminated fees for borrowers on all SBA loans. To date, more than 6,000 loans have been made.

Patriot Express was launched June 28, 2007, to expand upon the nearly $1 billion in loans that SBA guarantees annually for veteran-owned businesses. SBA also offers counseling assistance and procurement support each year to more than 200,000 veterans, service-disabled veterans, reservists and members of the National Guard.

"America’s veterans have the leadership skills and experience to become successful entrepreneurs and small-business owners," said SBA Administrator Karen Mills [pictured]. "As we celebrate Independence Day, we renew our commitment to more than 26 million veterans and service members across the country -- including the thousands returning from Iraq and Afghanistan. The Patriot Express initiative, in conjunction with other SBA programs, puts more capital and more tools in the hands of veterans as they grow their businesses and create the jobs America needs."

Patriot Express is a streamlined loan product based on the agency’s highly successful SBA Express Program, but with an enhanced guaranty and interest rate. Patriot Express loans are offered by SBA’s network of participating lenders nationwide, and features one of SBA’s fastest turnaround times for loan approvals. Patriot Express loans are available for up to $500,000.

The Patriot Express loan can be used for most business purposes -- including start-up, expansion, equipment purchases, working capital, inventory, or business-occupied real-estate purchases. Local SBA district offices can provide lists of Patriot Express lenders in their areas. Details on the initiative can be found at www.sba.gov/patriotexpress.

Patriot Express is available to military community members -- including veterans; service-disabled veterans; active-duty service members participating in the military’s Transition Assistance Program; National Guard and Reservist members; current spouses of any of the above; and the widowed spouse of a service member or veteran who died during service, or of a service-connected disability.

The average Patriot Express loan amount is almost $82,000; nearly 15 percent of those loans have gone to military spouses. After a loan application is approved by a commercial lender, it is submitted to SBA for approval. Most applications are approved by SBA within 24 hours.

Additionally, SBA has entered an agreement with six major universities to expand and deliver entrepreneurship training for service-disabled veterans of the wars in Iraq and Afghanistan, in a program called Entrepreneurship Bootcamp for Veterans with Disabilities [EBV]. For more information go to http://bit.ly/WhitmanEBV.

SBA also offers business counseling through veterans’ business development officers in district offices in every state and territory, to provide access to SBA’s range of programs and services. SBA recently expanded the Veterans Business Outreach Centers to 16 locations. They're listed at http://bit.ly/VetsBiz.

In addition to district offices, SBA’s resource partners -- including SCORE, Counselors to America’s Small Business, an expanded Small Business Development Center program for veterans, and Women’s Business Centers [WBCs] -- provide local and online assistance with: writing a business plan, financing options to start or grow your business, managing the business, expanding the business, and selling goods and services to the federal government.

The agency, along with other federal agencies, recently entered a joint agreement to help Native American/Alaska Native veteran-owned businesses with an entrepreneurship education program at the Tuck School of Business at Dartmouth.

For those who are already small-business owners and who expect call-up, the SBA and its resource partners can help with preparing their businesses before deployment, managing their businesses, selling goods and services to the government, obtaining other SBA financing and financial assistance, and obtaining loans for economic injury via Military Reserve Economic Injury Disaster Loans [MREIDL]. Loans of up to $2 million are available for small businesses sustaining economic injury because an owner or essential employee has been called to active duty as a military reservist.

The SBA and its Office of Veterans Business Development [OVBD] provides comprehensive assistance, outreach and support to veterans. Each year, SBA helps more than 200,000 veterans, service-disabled veterans and reservists.

To learn more about additional opportunities for veterans available through the SBA, please visit http://bit.ly/VetBizDev.

SOURCE: U.S. Small Business Administration
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SBA Supports More Than $29.2 Billion in Recovery Loans to Small Businesses

The U.S. Small Business Administration [SBA] received $730 million in the American Recovery and Reinvestment Act [ARRA] to help unlock the small-business lending market and get capital flowing again to America’s small businesses. Due to the success of these programs, the SBA has received an additional $305 million to continue some ARRA programs through May.

SBA Recovery Efforts -- Impact to Date
* SBA Has Supported More Than $29.2 Billion in Recovery Loans to Small Businesses: As of June 25, SBA has supported $29.2 billion-plus in small-business lending, with the approval of $21.9 billion in Recovery loans since Feb. 17. From Feb. 17, 2009 to June 25, 2010, weekly SBA loan dollar volumes rose more than 90 percent in the 7[a] and 504 programs, compared to the weekly average before passage.

* More Lenders Making Loans: From Feb. 17, 2009 to June 25, 2010, more than 1,363 lenders who had not made a loan since at least 2007, made a 7[a] loan.

* Broad Support to Businesses: A significant share of Recovery loans have gone to rural [24 percent], minority-owned [21 percent], women-owned [18 percent], and veteran-owned [8 percent] businesses.

* Secondary Markets Uptick with 7[a] Loans: After months of reduced activity and lower premiums, the SBA 7[a] secondary market is picking up, and premiums are beginning to recover. From June to May, the average monthly loan volume settled from lenders to broker-dealers in the 7[a] secondary market has been $330 million, providing lenders with additional liquidity to increase lending.

* America's Recovery Capital [ARC] Loans Helping Small Businesses: As of June 25, SBA has approved 7,871 ARC loans totaling over $254.8.5 million by 1,265 lenders to help small businesses make it through this tough economy.

SBA Recovery Programs
To date, SBA has implemented programs for all of the $730 million in SBA Recovery Act funding, plus an additional $305 million provided in December, February, March and April for the agency’s lending programs -- including:

* Eliminating and reducing fees for borrowers on 7[a] loans, and for borrowers and lenders on 504 loans;

* Raising to 90 percent the guarantee on 7[a] loans -- from 75 or 85 percent, depending on the size of loan;

* Doubling the surety bond guarantee from $2 million to $5 million, providing small businesses with another tool to help them compete for federal construction and service contracts;

* Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred-repayment loans of up to $35,000 to viable businesses to help them make debt payments;

* Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation;

* Expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies [SBICs]; and

* Taking steps to ensure the stability of the secondary market for SBA loans.

The SBA has also implemented two new programs that complement the ARRA measures and increase access to capital for small businesses by:

* Expanding 7[a] loan eligibility to more than 70,000 small businesses through a temporary alternate size standard; and

* Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.

To learn more about how SBA and the Recovery Act are helping small businesses succeed throughout America, go to: http://bit.ly/SuccessStoriesSBA.

SOURCE: U.S. Small Business Administration
____________________

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New First-Mortgage Loan Poolers Will Jump-Start Secondary Market for SBA 504 Loans, Make Credit More Available

Today, the U.S. Small Business Administration announced the first nine loan pool originators authorized by the agency to assemble and sell pools of 504 program first-mortgage loans -- a major step to jump-starting a secondary market that should make fixed-asset financing more widely available for small businesses.

The new program was approved under the American Recovery and Reinvestment Act.

Prior to the recent disruption in the credit market, a private secondary market for these loans existed, but has not revived as the economy has started to rebound. SBA expects this new program to breathe new life into that secondary market and improve access to credit for small businesses by providing a resource that can help boost liquidity to small-business lenders.

"With the resources provided in the Recovery Act, we have engineered a turnaround in its SBA lending, putting nearly $30 billion in the hands of small businesses across the country," said SBA Administrator Karen Mills [pictured]. "This added support now to relaunch the 504 first-mortgage secondary market builds on that success, and will help leverage even more capital for small businesses to support their growth and create new jobs."

Under the program, the SBA will provide a government guarantee on pools of portions of eligible 504 first-mortgage loans assembled by approved pool originators to be sold to third-party investors. Lenders will retain at least 15 percent of each individual loan, pool originators will assume five percent of the risk, and the SBA will guarantee the remaining 80 percent.

Typically, a 504 project includes three elements:

1] A loan [or first mortgage] secured with a senior lien from a private-sector lender, covering up to 50 percent of the project cost;

2] A second mortgage secured with a junior lien from a Certified Development Company [backed by a 100 percent SBA-guaranteed debenture], covering up to 40 percent of the cost; and

3] A contribution of at least 10 percent equity from the small-business borrower.

Under the new program, portions of the senior liens are pooled by pool originators and sold to investors in the secondary market. To be eligible to be included in a pool, the first mortgage must be associated with a 504 loan disbursed on or after Feb. 17, 2009. The program will be in place until Feb. 16, 2011 -- or until $3 billion in new pools are created, whichever occurs first.

The pool originators approved thus far are:

* Bank of America, N. A. of New York, N.Y.;

* Cantor Fitzgerald & Co. of New York, N.Y.;

* Citizens Bank of Elizabethton, Tenn.;

* Coastal Securities, Inc. of Houston, Tex.;

* Community South Bank of Knoxville, Tenn.;

* Fidelity Bank of Covington, Ga.;

* Meadows Bank of Las Vegas, Nev.;

* Morgan Stanley Bank, N.A. of Salt Lake City, Utah; and

* Voyager Bank of Eden Prairie, Minn.

For additional information on the pool originators, visit: http://bit.ly/SecondaryMarket.

The list will be updated regularly as new originators are approved.

For more information about all of the SBA’s programs for small businesses, visit the SBA’s website at http://www.sba.gov/.

SOURCE: U.S. Small Business Administration
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USIBWC Awards Contract to El Paso Firm for Rio Grande Levee Construction, Funded by the Recovery Act

The United States Section of the International Boundary and Water Commission [USIBWC] has awarded a construction contract for rehabilitation of Rio Grande Rectification Project levees in West Texas, funded through the American Recovery and Reinvestment Act of 2009 [Recovery Act]. The Recovery Act includes $220 million for USIBWC levee projects.

A contract in the amount of $8.3 million was awarded to Ultimate Concrete LLC of El Paso, Tex., to construct 15.4 miles of levee improvements in El Paso and Hudspeth counties. In accordance with the contract, Ultimate Concrete will raise and make structural improvements to 6.9 miles of river levee in the Fabens-Tornillo area and 8.5 miles at Fort Hancock between the Alamo and Diablo Arroyos, including a gated floodwall at the Fort Hancock-Porvenir International Bridge. The work is expected to be completed in early 2011.

"I am pleased that we are able to improve flood protection for the community while putting local people back to work," said U.S. Commissioner Edward Drusina [pictured].

The Rio Grande Rectification Project is a USIBWC flood control project that covers 85 river miles from El Paso to Fort Quitman, Tex. The USIBWC has already raised Rectification Project levees protecting the city of El Paso.

The USIBWC is raising levee height and making structural improvements to bring the levees into compliance with standards established by the Federal Emergency Management Agency [FEMA] to provide protection against the 100-year river flood.

To date, the USIBWC has awarded $154.7 million in Recovery Act contracts -- including contracts for levee construction in Hatch and the Mesilla Valley, in New Mexico; El Paso’s Upper Valley, in Texas; and the Lower Rio Grande Valley, in Hidalgo and Cameron counties, Texas.

The purpose of the Recovery Act is to create and save jobs, promote economic recovery, and invest in infrastructure that will provide long-term economic benefits. USIBWC Recovery Act expenditures have already preserved or created 390 jobs.

The USIBWC provides regular public updates on its planning and spending of Recovery Act funds at http://www.recovery.gov/ and http://www.state.gov/recovery. A project schedule is available at http://bit.ly/RecoveryUSIBWC.

SOURCES: Recovery.gov, U.S. Department of State
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SBA-Backed Lending Tops $29 Billion, Thanks to Recovery Act Funds

The U.S. Small Business Administration [SBA] received $730 million in the American Recovery and Reinvestment Act [ARRA] to help unlock the small-business lending market and get capital flowing again to America’s small businesses. Due to the success of these programs, the SBA has received an additional $305 million to continue some ARRA programs through May.

SBA Recovery Efforts -- Impact to Date
* SBA Has Supported More Than $29 Billion in Recovery Loans to Small Businesses: As of June 11, SBA had supported $29 billion-plus in small-business lending, with the approval of $21.7 billion in Recovery loans since Feb. 17. From Feb. 17, 2009 to June 11, 2010, weekly SBA loan dollar volumes rose more than 90 percent in the 7[a] and 504 loan programs, compared to the weekly average before passage.

* More Lenders Making Loans: From Feb. 17, 2009 to June 11, 2010, more than 1,354 lenders who had not made a loan since at least 2007, made a 7[a] loan.

* Broad Support to Businesses: A significant share of Recovery loans have gone to rural [24 percent], minority-owned [20 percent], women-owned [18 percent], and veteran-owned [8 percent] businesses.

* Secondary Markets Uptick with 7[a] Loans: After months of reduced activity and lower premiums, the SBA 7[a] secondary market is picking up, and premiums are beginning to recover. From June to May, the average monthly loan volume settled from lenders to broker-dealers in the 7[a] secondary market has been $330 million, providing lenders with additional liquidity to increase lending.

* America's Recovery Capital [ARC] Loans Helping Small Businesses: As of June 11, SBA had approved 7,776 ARC loans -- totaling over $251.7 million by 1,258 lenders -- to help small businesses make it through this tough economy.

SBA Recovery Programs
To date, SBA has implemented programs for all of the $730 million in SBA Recovery Act funding, plus an additional $305 million provided in December, February, March and April for the agency’s lending programs -- including:

* Eliminating and reducing fees for borrowers on 7[a] loans, and for borrowers and lenders on 504 loans;

* Raising to 90 percent the guarantee on 7(a) loans -- from 75 or 85 percent, depending on the size of loan;

* Doubling the surety bond guarantee from $2 million to $5 million, providing small businesses with another tool to help them compete for federal construction and service contracts;

* Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred-repayment loans of up to $35,000 to viable businesses to help them make debt payments;

* Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation;

* Expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies [SBICs]; and

* Taking steps to ensure the stability of the secondary market for SBA loans.

The SBA has also implemented two new programs that complement the ARRA measures and increase access to capital for small businesses by:
* Expanding 7[a] loan eligibility to more than 70,000 small businesses through a temporary alternate size standard; and

* Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.

To learn more about how SBA and the Recovery Act are helping small businesses succeed throughout America, go to: http://bit.ly/SuccessStoriesSBA.

SOURCE: U.S. Small Business Administration
____________________

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President Obama on Removing Barriers for Small Business: 'We Have to Keep Moving Forward'

This morning, President Barack Obama met with several small-business owners and executives to discuss the economic challenges they face. Among his Oval Office visitors: Prachee J. Devadas, president & CEO, Synergy Enterprises Inc.; Anand A. Devadas, vice president of corporate operations, Synergy Enterprises Inc.; Bobby Pancake and Steve Wheat, partners of High 5 LLC, a franchisee of Buffalo Wild Wings; and Terry Haney, general manager of Buffalo Wild Wings Grill & Bar in Dover, Del.

Afterward, President Obama and his guests [pictured above] went out to the Rose Garden, where he called on Congress to pass legislation to provide new tax credits and lending incentives that will help small businesses grow and create new jobs. Following, is an excerpt from his speech:

"From the middle of 2007 to the end of 2008, small businesses lost 2.4 million jobs," Obama noted. "And because banks shrunk from lending in the midst of this financial crisis, it’s been particularly difficult for small-business owners to take out loans to open up shop or expand. It’s been hard to finance inventories and payroll and new equipment.

"Now, I’ve said before and I’ll repeat, government can’t guarantee success for these companies. But it can knock down barriers that prevent owners from getting loans. Government can’t create private-sector jobs. But it can create the conditions for small businesses like these to grow and to hire more people. That’s what’s guided much of our economic agenda.

"So let me be specific. Last year, we enacted seven tax cuts for America’s small business -- seven tax cuts. So far, the Recovery Act has supported over 68,000 loans to small businesses, which translates into nearly $29 billion in new lending.

"More than 1,300 banks and credit unions that had not made SBA loans since before the financial crisis are now lending again. More than $8 billion in federal Recovery Act contracts are now going to small businesses. In fact, Prachee has been able to add 20 part-time and full-time workers because of the Recovery Act.

"In addition, as a result of a bill I signed into law a few months ago, businesses are now eligible for tax cuts when they hire -- when they hire unemployed workers, they're eligible for tax cuts. Companies are also able to write off more of their investments in new equipment.

"And, as part of the health reform package, 4 million small-business owners recently received a postcard in their mailboxes from the IRS, and it was actually good news: It told them that they could be eligible for a health-care tax credit this year that could be worth perhaps tens of thousands of dollars to these small businesses.

"So these and other steps are making a difference. Little more than a year ago, the economy was in freefall. Today, it’s growing again. Little more than a year ago, the economy was losing an average of 750,000 jobs per month. It’s now been adding jobs for five months in a row.

"But even though we are in the process of digging ourselves out of this recession, we’re still in a pretty deep hole. Millions of our family members, our friends, our neighbors are still looking for work -- they're still faced with the prospects of long-term unemployment. Credit is still less available than it should be, particularly to small businesses.

"As small-business owners like Prachee and Bobby and Steve will tell you, we may be recovering but we’re not yet recovered. We have to keep moving forward.

"And that’s why I’m urging Congress to swiftly approve a set of tax breaks and lending incentives to spur hiring and growth at small businesses. The legislation that's being debated right now would eliminate capital-gains taxes for small investment -- for investments in small firms, which will help move capital to these companies across America. It will provide tax relief to small start-ups to encourage folks to open up businesses, as well.

"To foster more credit, the package would create the small-business lending fund I proposed in my State of the Union address, to help underwrite loans through community banks. And we’d create a new state small-business credit initiative, because states facing budget shortfalls are scaling back lending to small firms and manufacturers; that's working against our recovery. I’m also urging Congress to expand and extend successful SBA programs -- by increasing loan limits, for example -- something that could benefit people like Bobby and Steve.

"In fact, since the start of my administration, we’ve been hearing from small businesses that want to retain and hire more employees, but they need additional credit. And we’ve been hearing from small community banks that want to lend more to small businesses, but they need additional capital. So this bill helps fulfill both needs. And to help us create jobs without adding to our deficit, we’re making the tough choices to pay for these proposals.

"So I’m hopeful that the House will pass these measures next week, and that the Senate will follow as soon as possible -- with both support from Democrats and Republicans. And I’m eager to sign this tax relief and additional lending into law. That’s how we can continue to move our economy forward -- to continue on the path from recession to recovery, but also, ultimately, to prosperity."

To view a video of today's Rose Garden event, including President Obama's entire speech, go to: http://bit.ly/SmallBizBarriers.

SOURCES: HealthReform.gov, IRS.gov, U.S. Small Business Administration, The White House [photo]
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SBA's Recovery Act-Related Small-Business Lending Tops $28.6 Billion

The U.S. Small Business Administration [SBA] received $730 million in the American Recovery and Reinvestment Act [ARRA] to help unlock the small business-lending market and get capital flowing again to America’s small businesses. Due to the success of these programs, the SBA has received an additional $305 million to continue some ARRA programs through May.

SBA Recovery Efforts -- Impact to Date
* SBA Has Supported More Than $28 Billion in Recovery Loans to Small Businesses: As of June 4, SBA had supported more than $28.6 billion in small-business lending, with the approval of $21.5 billion in Recovery loans since Feb. 17. From Feb. 17, 2009 to June 4, 2010, weekly SBA loan dollar volumes rose more than 90 percent in the 7[a] and 504 loan programs, compared to the weekly average before passage.

* More Lenders Making Loans: From Feb. 17, 2009 to May 28, 2010, more than 1,347 lenders who had not made a loan since at least 2007, made a 7[a] loan.

* Broad Support to Businesses: A significant share of Recovery loans have gone to rural [24 percent], minority-owned [21 percent], women-owned [18 percent], and veteran-owned [8 percent] businesses.

* Secondary Markets Uptick with 7[a] Loans: After months of reduced activity and lower premiums, the SBA 7[a] secondary market is picking up and premiums are beginning to recover. From June to May, the average monthly loan volume settled from lenders to broker-dealers in the 7[a] secondary market has been $330 million, providing lenders with additional liquidity to increase lending.

* America's Recovery Capital [ARC] Loans Helping Small Businesses: As of June 4, SBA has approved 7,711 ARC loans, totaling over $249 million by 1,255 lenders, to help small businesses make it through this tough economy.

SBA Recovery Programs
To date, SBA has implemented programs for all of the $730 million in SBA Recovery Act funding, plus an additional $305 million provided in December, February, March and April for the agency’s lending programs -- including:

* Eliminating and reducing fees for borrowers on 7[a] loans, and for borrowers and lenders on 504 loans;

* Raising to 90 percent the guarantee on 7[a] loans -- from 75 or 85 percent, depending on the size of loan;

* Doubling the surety bond guarantee from $2 million to $5 million, providing small businesses with another tool to help them compete for federal construction and service contracts;

* Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred-repayment loans of up to $35,000 to viable businesses to help them make debt payments;

* Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation;

* Expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies [SBICs]; and

* Taking steps to ensure the stability of the secondary market for SBA loans.

The SBA has also implemented two new programs that complement the ARRA measures and increase access to capital for small businesses by:

* Expanding 7[a] loan eligibility to more than 70,000 small businesses through a temporary alternate size standard; and

* Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.

To learn more about how SBA and the Recovery Act are helping small businesses succeed throughout the U.S., go to: http://bit.ly/SuccessStoriesSBA.

SOURCE: U.S. Small Business Administration
____________________

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