ICS Magazine

Small biz lending stimulus runs dry -- again

February 23, 2010

A stimulus program aimed at boosting small business lending is so popular that it has run out of funds -- for the second time.

The Small Business Administration landed $375 million last year in Recovery Act money to temporarily reduce fees and increase the guarantees banks receive on loans made through the agency's lending programs. That money ran out just before Thanksgiving.

Congress appropriated another $125 million in December to extend the incentives through February. The SBA warned lenders late last week that the remaining cash is about to run dry, and could be used up by Monday. From CNNMoney.com