Keep It Coming Worried September 11 relief has busted the SBA's budget? Congress has you covered.
Opinions expressed by Entrepreneur contributors are their own.
The SBA was quick to come to the aid of entrepreneurs who werehurt by the terror attacks of September 11, expanding its disasterrelief efforts by starting the September 11 economic injurydisaster loan program late last October. But with the agency makingso many loans to help out disaster victims, should you be worriedthat its budget will be decimated, adversely affecting theSBA's ability to provide the guaranteed loans that many smallbusinesses rely on?
According to Mike Stamler, director of the SBA press office,there's no need for concern. "The money we are spending ondisaster relief loans is money that was specifically budgeted forthat purpose, and we have ample funds in our budgets for fiscalyear 2001, which ended September 30, and for fiscal year 2002,which began on October 1."
To meet the additional needs of the disaster loan program, theSBA received a special grant of funds from Congress. In fact,Stamler notes, "We have enough for $1.2 billion in disasterloans, and the total loaned out so far is less than $200million."
Should the $1.2 billion disaster loan fund run dry, the SBAwould be required by law to seek additional funding from Congressand could not shift money from the guaranteed loan account to thedisaster account unless Congress authorized such a move.
The SBA is dealing with guaranteed loans the same way it'salways handled them, says Stamler, adding that at press time, thevolume of guaranteed loans going through the agency was 6.5 percenthigher in 2001 than it was during the same period in 2000.
Contact Source
- SBA
www.sba.gov
