Program Overview and Purpose
Treasury launched the Small Business Administration (SBA) 7(a) Securities Purchase Program as part of the Obama Administration’s efforts to help small businesses in the wake of the 2008 financial crisis. America’s small businesses play an important job creation role, but during the financial crisis, thousands of small business owners across the country were finding it hard to get the credit they needed to grow their businesses and drive our economic recovery.
Key Facts
- The SBA 7(a) Securities Purchase Program helped facilitate the recovery of the secondary market for small business loans by purchasing securities comprised of the guaranteed portion of SBA 7(a) loans. These loans finance a wide range of small business needs, including working capital, machinery, equipment, furniture, and fixtures.
- Treasury invested approximately $368 million in 31 SBA 7(a) securities between March and September 2010.
- Since Treasury began its purchases, the SBA 7(a) market has recovered with new SBA 7(a) loan volumes returning to pre-crisis levels.
- On January 24, 2012, Treasury closed the SBA 7(a) Securities Purchase Program. In total, taxpayers recieved a positive gain of approximately $9 million from the program.