GREAT 41 IDEA: Apply for a Government-Backed Bank Loan

In the fall of 2010, right before the midterm elections when Republicans regained control of Congress, President Obama shamed legislators into freeing up a package of $30 billion in tax credits and loans and other programs aimed to help small business owners dig out. Main Street finally got what Wall Street had received years before.

It took a lot of wrangling, but the measure is aimed at encouraging community banks to lend money to qualified business owners. The U.S. Small Business Administration (SBA) also raised the maximum limit on several loan programs.

The changes are permanent for general small business loans under SBA's 7(a) guaranteed loan program, fixed asset loans through the 504 Certified Development Company program, Microloans, and International Trade, Export Working Capital, and Export Express loans. The SBA permanently increased 7(a) and 504 limits from $2 million to $5 million, and for manufacturers and certain energy-related projects seeking 504 loans, to $5.5 million.

The maximum for International Trade and Export Working Capital loans was increased from $2 million to $5 million. SBA also permanently increased microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.

The SBA boosted the limit on Export Express loans, from $250,000 to $500,000, and made the program permanent. Check (http://www.sba.gov for updates and loan details.