Clinch Valley News

SBA Legislation
A bill to introduce increase the total amount of funds authorized for the "revolving loan fund" of the Small Business Administration (SBA) has been approved by the Congress and sent to the President. The total was raised from $1.2 billion to more than $1.6 billion, with provision made in the bill to establish the amounts that can be outstanding at any time for regular business loans, disaster loans, or functions under the Small Business Investment Act. A provision was added to the basic law to make it possible for SBA to loan funds to industries by imports: another review of the program will be made in two years by the Congress.

The SBA has been of considerable help to firms in Virginia and the Ninth District. During the six month period of July-December 1961, SBA's services to the Nation's small businesses were greater than any previous six month period in the agency's history. A record total of 3,768 business loans were made during the six month period mentioned; more than $1 billion of proposed government purchases were set aside for small business firms; licenses were issued for 145 privately owned small business investment companies; more than 3,700 disaster loans were approved; and over 40 loans to State and local development companies to help finance small businesses were granted.

Using a different time period, the SBA has reported that from June 30, 1961, to March 31, 1962, the loans to State and local development companies have created more than 10,000 new job opportunities. Thirteen such loans in Virginia for new plant facilities provided 1,075 new jobs. Usually the development company provides a portion of the funds needed for a new plant with SBA loaning up to 80 percent. In the Ninth District, three of these loans have been utilized in Big Stone Gap, Bland, and Richlands. The Big Stone Gap loan was for a cannery to not only provide new jobs but give area farmers an outlet for certain vegetable crops. In Bland, a hosiery mill was returned to operation with the purchase of new equipment to meet the demand for a certain type of hosiery. In Richlands a new garment production plant is under construction. Other applications from Ninth District communities are currently being reviewed by SBA for need and financial soundness. These applications, if approved, can contribute materially to the outlook for new job opportunities.

Information pamphlets on the SBA's programs are available from my office.

Office on request, but direct inquiries on proper loan application procedure should go to the Richmond SBA Regional Office.