Landrieu, Snowe Request Information on SBA Microloan Program

Seek assurances that recovery funds are reaching small businesses and that budget sufficient for FY2011.

WASHINGTON, May 25 /PRNewswire-USNewswire/ -- United States Senators Mary L. Landrieu, D-La., and Olympia J. Snowe, Chair and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, today sent a letter to Small Business Administration (SBA) Administrator Karen Mills requesting information on the SBA's Microloan Program. As a follow up to the budget hearing and with demand for capital still critical, Senators Landrieu and Snowe requested information regarding funding that was provided through the American Recovery and Reinvestment Act (ARRA).

With the AARA funds only available through September 30, 2010, Senators Landrieu and Snowe requested answers to the following questions:

• When did the SBA first obligate these funds?
• How much money to date has obligated?
• When will the remaining funds be obligated?
• How many requests did the SBA receive for funding?

In FY2010, President Obama appropriated $25 million to the Microloan program. However,

FY2011 only requests $13.8 million, a drop of $11.2 million. At the same time, the SBA plans to bring approximately 30 new lending intermediaries into the program.

"In light of this reduction, we are interested in learning how the SBA plans to sustain its support of these additional intermediaries following the expiration of ARRA funding on September 30, 2010," Senators Landrieu and Snowe said in the letter.

A full copy of the letter can be viewed by clicking here.

SOURCE U.S. Senate Committee on Small Business & Entrepreneurship