The American Recovery and Reinvestment Act contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs that will help unlock credit markets and begin economic recovery for the nation’s small business sector.

The bill provides $730 million to SBA and makes changes to the agency’s lending and investment programs so that they can reach more small businesses that need help.

“The tax incentives and credit stimulus elements of the Recovery Act will truly help small business owners affected by the credit crunch, and will provide financing opportunities to help them create new jobs in their communities,” said Acting SBA Administrator Darryl K. Hairston. 

Overview of the American Recovery and Reinvestment Act of 2009 (Recovery Act)

The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law by President Obama on February 17, 2009. It is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century.

The Act is an extraordinary response to a crisis unlike any since the Great Depression, and includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

• Recovery Act Frequently Asked Questions for Small Business Owners
• Recovery Act Legislation

Implementing the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act will have a significant impact on small businesses and on the credit crunch, providing tax incentives and financing opportunities that will help them create jobs.

The American Recovery and Reinvestment Act makes SBA part of the solution, providing it with specific tools to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more small business loans, and help unfreeze the secondary markets to boost liquidity in the credit markets. 

More details on implementation will be coming over the next few weeks.

The bill provides $730 million to SBA and makes changes to the agency’s lending and investment programs so that they can reach more small businesses that need help.  The funding includes:

• $375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans
• $255 million for a new loan program to help small businesses meet existing debt payments
• $30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
• $20 million for technology systems to streamline SBA’s lending and oversight processes
• $15 million for expanding SBA’s Surety Bond Guarantee program
• $25 million for staffing up to meet demands for new programs
• $10 million for the Office of Inspector General

Latest News and Resources

• Press Release: Statement from SBA Acting Administrator on Recovery Efforts Announced by President Obama Today (3/16/09)
• SBA Policy Notice: Fee Elimination Provisions (3/16/09)
• SBA Policy Notice: Up to 90 Percent Guaranty on 7(a) Loans (3/16/09)
• White House Fact Sheet: President Obama and Secretary Geithner Announce Plans to Unlock Credit for Small Businesses (3/16/09)
• Press Release: SBA Applauds Stimulus Bill, Planning Underway For Broadest, Quickest Small Business Impact (2/18/09)

Agency Plans and Reports 

Major Communications   Get Feed

• SBA Major Communications Report – 03/10/2009
      

Weekly Update   Get Feed

• SBA Weekly Update Report – 03/06/2009
• SBA Weekly Update Report – 03/03/2009  
  
  

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Learn More About Our Programs

SBA Financial Assistance 
SBA provides a number of financial assistance programs for small businesses including
7(a), 504 and disaster assistance loans.  Learn More.

SBA Contracting Opportunities
Selling to the Federal Government can provide significant revenues for your business—and the process is not as complicated as you may think. Learn More.  

Small Business Planning
Learn how to create a small business plan that will work for you. Learn More. 

FREE Online Business Courses
SBA provides over 25 self-paced, online business courses covering a variety of topics including: business planning, loan packaging and marketing.  Learn More.

SBA Publications Library
SBA's resource library provides an abundance of information to assist you in many different areas of running your business. Learn More.

SBA District Offices
Locate an SBA office in your area. Learn More. 

Additional Resources:

• Apply for grants at Grants.gov
• Apply for federal business opportunities at FBO.gov
• Report fraud to and view reports from the Department's Inspector General 
• Recovery.gov