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Welch Unveils Plan to Expand SBA Loans - WCAX.COM Local Vermont News, Weather and Sports-

Welch Unveils Plan to Expand SBA Loans

Rep. Peter Welch Rep. Peter Welch

Burlington, Vermont - July 13, 2009

Congressman Peter Welch is introducing legislation this week he says will help cash-strapped small business owners.

Welch told reporters his proposal would extend the Express Loan available from the Small Business Administration-- right now it has a cap of $350,000. Welch's proposal would raise that cap to $2 million.

Loans would be available to small businesses at a market rate, but banks would have a guarantee from the federal government that would absorb some of the risk of making the loan.

"The problem with the loan is in this world, $350,000 doesn't get you the money you need in order to make real investment in equipment," said Welch, D-Vermont. "What this does very simply is build on something that's working but has too low a limit."

Interested businesses owners apply for the SBA Express Loan through local banks, which say they can often process them in 36 hours.

Kate Duffy - WCAX News

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