WASHINGTON, DC -- In an effort to help small businesses keep their doors open and their employees working during tough economic times, the Small Business Administration (SBA) today announced that more than 70,000 additional businesses, including auto dealers and suppliers, will be eligible for SBA loans thanks to a temporary change in the size standards for the agency's 7(a) loan program.

"This is good news for Rhode Island businesses and we can expect that it will help more employers stay afloat and prevent layoffs," said U.S. Senator Jack Reed (D-RI). "This temporary change will allow more small businesses in Rhode Island to take advantage of the benefits made possible in the Recovery Act. When Congress passed that bill earlier this year we strengthened the SBA's 7(a) loan program by providing for 90 percent loan guarantee and the reduction or elimination of fees."

The loans for working capital typically are provided by small regional banks and guaranteed by the federal government.

The temporary change in the 7(a) size standard will go into effect next week and will last until Sept. 30, 2010.