Increased Limits on SBA Bond Guarantees in Senate Emergency Appropriations Bill Draft
Thursday, December 13, 2012
The increase in the Small Business Administration’s (SBA)
from $2 million to $5 million has made it into the Senate Appropriations
Committee draft of a supplemental appropriations bill to provide aid to victims
of Super Storm Sandy. It is a permanent
increase to the SBA’s bond guarantee rather than one limited to Sandy-specific
states or construction projects. It could be discussed on the Senate floor as
early as tomorrow.
Another positive development is that the Office of
Management and Budget (OMB) has reported that this provision has no fiscal
impact because the SBA Bond Guarantee Program has sufficient balances to
backstop any impact from this increase.
SFAA is working with Senator Cardin’s (D-MD) office on this
issue. As requested, SFAA is preparing a
letter of support that the NASBP and the national contractors’ associations can
be added as signatories. We also are
working with the SBA Bond Guarantee Program staff to obtain any available
information on how the $5 million bond guarantee worked when it was effective
under the economic stimulus package in 2009-2010.
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