Small Business Administration

I just heard Karen Mills, Administrator of the SBA speak and she was encouraging stating that the SBA would move to simplify and broaden loan guaranties in an effort to help banks increase lending activities. This is a great news. She also mentioned a piece of legislation that the administration is attempting to get passed that would help community banks increase lending as well.

Nearly 5,000 of the banks in the country offer SBA loans.

One aspect of her speech was concerning as she mentioned that the SBA could just make loans directly without involving banks. This comment should be monitored.