This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SBA Struggles as Citigroup, AIG Hog Money

Furthermore, small-business owners can seek free counseling services from 1,400 individuals at 68 field offices across the country. "I think what was not recognized, in the past several years, was what a strong bone structure we had," Mills says.

But the SBA's loan programs have struggled to meet demand as access to capital gets tougher for small businesses everywhere. To wit: 39% of small businesses were unable to secure adequate funding in 2009, according to the National Small Business Association, an advocacy group in Washington. A total of 24% reported worsening terms on bank loans in the past year, and 64% said there have been increases in credit-card fees and interest rates -- and a decrease in credit limits -- in the past six months.

The American Recovery and Reinvestment Act of 2009 included provisions to eliminate fees and raise the maximum guarantee on certain SBA loans from 75% to 90%, a move that has inspired 1,200 more banks to join the SBA loan program since the act came into force. "We were very successful at deploying our recovery-act funds and getting them into the hands of businesses that needed capital," Mills says.

But the program was a little too successful. The $375 million allocated for the program ran out in November, leaving applicants stuck in a queue. In December, President Barack Obama signed legislation to allocate an additional $125 million to support $4.5 billion in additional SBA loans. The SBA expects that money to carry SBA Recovery Act loan activity for another month.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
AIG $58.20 0.00%
BAC $16.40 -0.24%
C $54.17 0.00%
GVA $34.17 0.00%
NOC $155.83 0.00%


DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs