The U.S. Chamber is applauding a move by the Small Business Administration (SBA) to allow an additional 70,000 small businesses to be eligible for SBA loans thanks to a temporary change in the size standards for the agency's 7(a) loan program.

"This change combined with the benefits made possible through the Recovery Act will go a long way in helping struggling small businesses regain their footing in this economy," says Giovanni Coratolo, Chamber vice president of Small Business Policy. "The Chamber is pleased that the new SBA Administrator Karen Mills recognizes the need for strong and decisive action during the current recession."

The SBA will temporarily allow businesses with a net worth of up to $8.5 million and an average two-year net profit of $3 million to qualify for a 7(a) loan. The current small business standards vary by industry and are based on revenue or number of employees–a standard which has shut out some of the neediest small businesses who fall just outside of the traditional 7(a) size standard.

The temporary 7(a) loan size standard, which takes effect this week and runs through Sept. 30, 2010, will parallel the standard for the agency's 504 Certified Development Company loan, and will allow more businesses, including auto and RV dealerships, auto industry suppliers and others, to qualify for the loans.

The SBA has temporarily altered the size limit in the past, most recently in response to Hurricanes Katrina and Rita.

Learn more about the temporary change.