Overview and Analysis of Small Business Provisions in the American Recovery and Reinvestment Act of 2009

Oscar R. Gonzales
Analyst in Economic Development Policy

N. Eric Weiss
Specialist in Financial Economics

The American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5), which was signed into law on February 17, 2009, provided supplemental appropriations for many federal programs in an effort to mitigate the effects of the economic recession that began in December 2007. This report provides an overview of key provisions related to the Small Business Administration (SBA).

P.L. 111-5 provided a total of $730 million to the SBA. Specifically, the act provided (1) an additional $630 million for loans and loan guarantees divided into two categories: $375 million set aside for reimbursements, loan subsidies, and loan modifications related to certain loans and $255 million for loan guarantees of $35,000 or less in a new small business stabilization program also known as the America's Recovery Capital (ARC) loan program; (2) $30 million for expanding the SBA's microloan program; (3) $25 million for staffing up to meet demands for new ARRA programs; (4) $20 million to improve lender oversight; (5) an additional $15 million for the SBA's surety bond program and increases in the size of the maximum bond; and (6) $10 million for the Office of Inspector General.

In addition to the $730 million provided in P.L. 111-5, the following legislation in the 111th Congress has provided funding of $305 million to extend ARRA SBA programs: P.L. 111-118 provided an additional $125 million; P.L. 111-144 provided $60 million; P.L. 111-150 provided $40 million; and P.L. 111-157 provided $80 million.

H.R. 2847, the Jobs for Main Street Act of 2009, approved by the House on December 16, 2009, would provide $325 million to extend ARRA fee reductions and the 90% loan guarantee limit through September 30, 2010. The Senate adopted H.R. 4213, the American Workers, State, and Business Relief Act of 2010, on March 10, 2010, by a 62-36 vote. It would provide $560 million to extend ARRA fee reductions and the 90% loan guarantee limit through December 31, 2010. The bill is currently in conference to reconcile differences between House and Senate versions.


Date of Report: June 21, 2010
Number of Pages: 12
Order Number: R40241
Price: $29.95

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