Senators Request Information on SBA Microloan Program

Senators Mary Landrieu (D-La.) and Olympia Snowe of Maine, who are the chair and ranking Republican of the Senate Committee on Small Business and Entrepreneurship, today sent a letter to Small Business Administration chief Karen Mills requesting information on the SBA’s microloan program.

They requested information regarding funding that was provided through the American Recovery and Reinvestment Act.

With the ARRA funds only available through Sept. 30, Sens. 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, fiscal 2011 only requests $13.8 million, a drop of $11.2 million. But 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,” the senators wrote.