{"id":20121,"date":"2024-12-02T02:57:21","date_gmt":"2024-12-02T02:57:21","guid":{"rendered":"https:\/\/gpt.m2mbeta.com\/?p=20121"},"modified":"2024-12-02T02:57:21","modified_gmt":"2024-12-02T02:57:21","slug":"white-house-raises-cap-on-small-business-loans","status":"publish","type":"post","link":"https:\/\/gpt.m2mbeta.com\/?p=20121","title":{"rendered":"White House Raises Cap on Small Business Loans"},"content":{"rendered":"
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The <\/span>White House<\/span><\/a> says it <\/span>is making<\/span> it easier for underserved small businesses to get capital.<\/span><\/p>\n

The Biden administration announced in a <\/span>news release<\/span><\/a> Friday (Nov. 29) that the <\/span>Small Business Administration<\/span><\/a> (SBA) had increased the maximum loan amount backed by its Community Advantage Small Business Lending Companies (CA SBLCs) from $350,000 to $500,000 for active lenders in good standing.\u00a0<\/span><\/p>\n

\u201cThese mission-based non-depository lenders \u2014 often Community Development Financial Institutions (CDFIs) \u2014 focus on providing access to capital to underserved businesses and underinvested businesses, ensuring that women, people of color, veterans, rural, and low- and moderate-income communities have access to SBA-backed capital,\u201d the release said.<\/span><\/p>\n

And<\/span> after small businesses <\/span>in 2023<\/span> received a record $86 billion in subcontract awards from the federal government, the <\/span>Office of Management and Budget<\/span><\/a> (OMB) is increasing access to federal subcontracting opportunities<\/span>, the release added<\/span>.<\/span><\/p>\n

The office is issuing guidance to government agencies on <\/span>how to expand<\/span> subcontracting opportunities for small businesses, <\/span>the<\/span> main way for them to compete as prime contractors.\u00a0<\/span><\/p>\n

The announcement came one week after a Bloomberg News report that the Federal Reserve\u2019s pandemic-era Main Street Lending Program <\/span>had $1.23 billion<\/span><\/a> in interest and principal payments in default as of the end of October.<\/span><\/p>\n

According to that report, the program delivered $17.5 billion in loans, with much of <\/span>those funds having been<\/span> repaid. However, some borrowers are struggling with high interest rates, balloon payments and post-pandemic changes in consumer behavior.<\/span><\/p>\n

The Main Street Lending Program made 1,830 loans of $100,000 to $300 million. It was a program designed for mid-sized businesses that were too big to participate in the <\/span>Paycheck Protection Program<\/span><\/a> and too small to turn to capital markets.<\/span><\/p>\n

But<\/span> the rates on the loans <\/span>are<\/span> adjusted, which ended up being a burden on borrowers as interest rates jumped after the pandemic.<\/span> The loans also had a repayment schedule with no payments for the first year, leaving borrowers with payments that increased along with interest rates.<\/span><\/p>\n

Meanwhile, PYMNTS wrote last month about another lending challenge facing small businesses. While embedded lending can benefit these companies, <\/span>the idea of<\/span> sharing their data<\/span><\/a> with lenders can be a tough pill to swallow.<\/span><\/p>\n

\u201cDespite the advantages for lenders, many SMBs hesitate to share their financial data, citing <\/span>concerns about data privacy<\/span><\/a> and misuse,\u201d PYMNTS wrote. \u201cIn Japan, only 13% of small businesses feel comfortable sharing real-time data, compared to 71% in India, the report notes. Businesses with previous experience in embedded lending are more likely to share data, with 73% of all small businesses surveyed that have used it expressing comfort with doing so again.\u201d<\/span><\/p>\n

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\n See More In: <\/span>CA SBLC<\/a>, Community Advantage Small Business Lending Companies<\/a>, News<\/a>, Office of Management and Budget<\/a>, OMB<\/a>, PYMNTS News<\/a>, SBA<\/a>, small and medium sized businesses<\/a>, Small Business Administration<\/a>, Small business lending<\/a>, small businesses<\/a>, SMBs<\/a>, What’s Hot<\/a>, white house<\/a><\/span>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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Source: <\/em> politics.einnews.com\u2026<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The White House says it is making it easier for underserved small businesses to get capital. The Biden administration announced in a news release Friday (Nov. 29) that the Small Business Administration (SBA) had increased the maximum loan amount backed by its Community Advantage Small Business Lending Companies (CA SBLCs) from $350,000 to $500,000 for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20121","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=\/wp\/v2\/posts\/20121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20121"}],"version-history":[{"count":0,"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=\/wp\/v2\/posts\/20121\/revisions"}],"wp:attachment":[{"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gpt.m2mbeta.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}