SBA Administrator: Recovery Funds Are Working

08.20.2009 by Elizabeth Ziegler

U.S. Small Business Administration Administrator Karen Mills says Utah is seeing the benefit of the Recovery Act. Photo by Elizabeth Ziegler.

(KCPW News) Federal stimulus money is boosting entrepreneurship and the state’s economy, according to the U.S. Small Business Administration. The agency received $730 million from the American Recovery and Reinvestment Act. SBA Administrator Karen Mills, who was in Salt Lake City today, says the funds have helped secure loans for about 1,000 small businesses throughout the state.

“That’s 1,000 businesses, $200 million, that we’ve been able to get into the hands of Utah’s entrepreneurs. And they are growing their businesses,” Mills says. “So this is going to turn around the economy here. And it is also going to make this region competitive going forward.”

Mills says the federal stimulus money allowed the agency to increase its small business loan guarantee from a maximum of 85 percent to 90 percent, and also waive its fees.

Local small business owner Robert Adams says this helped him fulfill his dream. Because of an SBA loan guarantee, he was able to purchase a west side long-term care facility, Midtown Manor. He says because the fees were waived, he saved $55,000. Adams says when he first had the opportunity to purchase the building, he didn’t think he’d be able to, but that changed.

“What can I say, four months later, we own a nursing home,” Adams says. “And you know it’s a great opportunity, it’s a great place, a great community, fantastic employees here — we have 72 employees. And you know it’s been a life changing experience for us.”

Mills held today’s press conference to promote the impact of the stimulus package, which has come under fire from conservatives who believe it hasn’t been effective. She also plugged federal health reform, saying small businesses are disproportionately impacted by skyrocketing insurance costs.