New law spurs $1 billion in business loans

Nearly 2,000 small-business owners have received about $1 billion in loans since President Obama signed a bill last week to provide $12 billion in tax incentives and a $30 billion loan fund. 

The signing of the bill provides the Small Business Administration with $505 million for its loan programs, which is expected to provide $14 billion in new lending, Karen Mills, SBA administrator, said in a Tuesday blog post on the White House's website.

More than 1,000 businesses owners have been waiting several months for the loans backed by the SBA to become available again. Since the bill's signing all the loans on hold plus an additional 1,000 have been pushed through the agency, Mills said.

Under the economic stimulus, the SBA had received $680 million, increased loan guarantees and reduced fees in the agency's top two loan programs. The small-business bill provided the cash needed to restart the loans. 

The agency had to stop making the loans when its authority for higher guarantees ended and funds for the fee waivers were exhausted in May and early summer.