Bigger SBA Loans and More Federal Contracts | Global News Avenue

Ahead of Small Business Saturday, the Biden-Harris administration announced several new initiatives on Friday, November 29, to support small businesses by expanding federal lending and contracting opportunities. These actions are part of an ongoing effort to advance economic growth and equity by promoting small business development in underserved communities.

Main provisions

1. Increase loan limits for underserved businesses:
   The Small Business Administration (SBA) is increasing the Community Advantage Small Business Loan Corporation (CA SBLC) 7(a) small loan limit from $350,000 to $500,000. These mission-driven lenders often serve women, people of color, veterans, and businesses in low-income or rural areas.
2. Enhancing Federal Contracting Opportunities:
   The U.S. Office of Management and Budget (OMB) is issuing new procurement guidance to improve forecasts of federal contracting opportunities. This guide is designed to help small businesses prepare competitive proposals and obtain contracts.
3. Promote Small Disadvantaged Businesses (SDB):
   OMB will expand the federal supplier base by increasing the share of small, disadvantaged businesses owned by minorities and women, thereby increasing supply chain resiliency.

What this means for small businesses

small business thrive or withered depends on access working capitalthe most common form is Small Business Administration Loan. Small business lenders authorized to originate and service Standard 7a SBA Loan Loans of up to $500,000 are now available to small business borrowers, up from $350,000. Taking into account rising costs due to inflation, an increase in the loan limit can have a real impact on small businesses obtaining the funds they need for offices, equipment and staff salaries.

Many small businesses, especially those owned by minorities or women, compete for federal contracts. The new initiative will help expand these contract opportunities and make them more transparent and accessible.

Since January 2021, more than 20 million new applications have been submitted, a record high in U.S. history. The growth has been particularly pronounced among historically underrepresented groups, with Black business ownership doubling and Hispanic and Asian American ownership reaching a 30-year high.

Choose an SBA Lender

Small business owners should consider choosing an SBA preferred lender to have the authority to process, close and service loans more efficiently than non-preferred lenders. Small business borrowers can use SBA Lender Matching Tool Narrow down your best options from SBA Preferred Lenders.

Alternatively, small businesses have loan options Outside of the SBA loan process, although interest rates and other terms may be less favorable.

bottom line

By increasing SBA loan limits, improving access to federal contracts, and prioritizing equity in financing, the White House initiatives further empower small businesses as important drivers of the U.S. economy. These efforts are designed to ensure that entrepreneurs in all communities have access to the tools and resources they need to succeed.