Following approval of the Small Business Jobs Act, the Small Business Administration (SBA) has increased maximum loan sizes in several of its programs. The bill was designed to provide an additional $14 billion in lending to small businesses. The changes will be widespread, as 7(a) guaranteed loans and 504 Certified Development Company programs, along with microloans, International Trade, Export Express, and Export Working Group Capital loans have all increased. For 7(a) guaranteed loans and 504 loans, limits have increased from $2 million to $5 million; the maximum went up to $5.5 million for manufacturers and certain energy-related projects.

Microloan recipients also will benefit from the changes. SBA permanently increased microloan limits from $35,000 to $50,000, hoping to help a wider range of entrepreneurs. SBA also doubled the limit for Export Express loans from $250,000 to $500,000, while also making the program permanent.

Additionally, for one year, the limit on Express loans has been raised from $350,000 to $1 million. These loans are particularly relevant in a time of economic recovery. With reduced paperwork, approval can come in a matter of days. These loans carry a 50 percent guarantee and may be used as a revolving line of credit.

SBA Administrator Karen Mills predicted that the new loans would lead to increased job creation. "Across the country, there are small business owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that," she said.

More information may be found at www.sba.gov/news.