Bank of Commerce is acknowledged as a Most well-liked Lender by the U.S. Small Enterprise Administration. The Small Enterprise Administration (SBA) was created by the Small Business Act of 1953 and derives its present existence and authority from the Small Enterprise Act ( 15 U.S.C. 631 et seq.) and the Small Business Funding Act of 1958 ( 15 U.S.C. 661 ).
The idea behind the SBA-backed loans was that the industrial banking system wasn’t offering small enterprise house owners the identical sorts of entry to capital to start out, develop, and preserve their companies functioning that these monetary providers institutions supply to larger companies – provided that they usually have extra assets and collateral, a larger cash circulation, and a lengthier and more proven credit score historical past.
As a result of a authorities extensive give attention to growing small enterprise contracting alternatives, during President Obama’s first term (FY2009 – FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses.
The primary use of the programs is to make loans for longer compensation intervals based mostly in part upon looser underwriting criteria than regular business enterprise loans, though these packages can allow owners with unfavorable credit ratings to receive a mortgage.
The 2008 credit score disaster has made it harder for small businesses to get a start-up mortgage than in earlier years, according to Lydia Dishman of In 2009, for instance, the U.S. Small Enterprise Administration lowered its lending to small companies by 36 percent over the earlier year.