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TEN-WEEK BACKLOG OF SBA LOANS CLEARED WITHIN A WEEK OF SUPPLEMENTAL FUNDING APPROVAL

 WASHINGTON, July 13 /PRNewswire/ -- Nearly $1 billion in small business loan guarantees, backlogged during the nearly 10 weeks the Small Business Administration (SBA) loan program was out of funds, has been approved and forwarded to commercial lenders for action in less than a week's time, SBA Administrator Erskine Bowles announced today.
 "We mobilized this agency to get these loans into the hands of small businesses as quickly as we could, and clearly that effort has paid off," Bowles said. "We moved a $1 billion shot in the arm for the nation's small business sector through in less than a week."
 President Clinton signed the supplemental appropriations bill on July 3, approving $175 million for SBA's 7(a) General Business Loan Guarantee Program, enough to finance $3.2 billion in guaranteed loans.
 By July 9, SBA had approved and forwarded to lenders loan guarantees amounting to $988.4 million. The total increased to nearly $1.1 billion on July 12. The biggest single day was July 7, when SBA moved $381.3 million in loan guarantee authorizations to commercial lenders who needed SBA paperwork before they could disburse the loans to businesses.
 The popular loan program, which makes up more than 90 percent of SBA's credit effort, had exhausted its fiscal year 1993 loan authority of $3.6 billion on April 27, forcing a temporary suspension just seven months into the fiscal year.
 Under Administrator Bowles' direction, SBA continued to accept and process new applications during the suspension, allowing the agency to achieve a quick turn-around when President Clinton and the Congress approved the supplemental appropriation.
 The appropriation increases the total fiscal year 1993 program level for the program to $6.8 billion, a 21 percent increase over the record $5.6 billion in guaranteed loans established in fiscal year 1992.
 Bowles estimated that the boost in available loan funds will finance the creation or maintenance of more than 300,000 jobs and generate up to $600 million in new tax revenues.
 "I think that's a good return on your investment in anybody's book," he said.
 Bowles said he hopes to avoid the funding shortfall problem in future years by making better advance estimates of how much SBA will need and making every effort to get Congress to appropriate it. The proposed SBA budget for fiscal year 1994 includes enough funding to provide for $6.6 billion in guaranteed loans.
 -0- 7/13/93
 /CONTACT: Mike Stamler of SBA, 202-205-6740/


CO: U.S. Small Business Administration ST: District of Columbia IN: SU:

MP-OS -- NY044 -- 0895 07/13/93 12:43 EDT
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Date:Jul 13, 1993
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