Gov. Sonny Perdue on Thursday signed a bill authored by local state Rep. James Mills.

The bill, House Bill 926, will help individuals and corporations renew large loans with Georgia-chartered banks. The bill permits banks to renew performing loans — in which all payments have been made on time — even if the economy has dragged down the values of the property.

Mills, R-Chestnut Mountain, is the first sponsor listed on the bill.

After the bill was signed, Lt. Gov. Casey Cagle issued a statement applauding the state Senate for the passage of the bill, which will lift some state mandates allowing state-chartered banks greater flexibility to renew loans for customers in good standing.

“This common-sense piece of legislation will prove to be a win for consumers and small businesses, which will be spared the inconvenience and cost of searching for additional credit in a slow market,” Cagle said. “Simply put, it will align our lending laws with federal law and allow more Georgia citizens to keep doing business with Georgia banks.”

Cagle said the bill will bring state laws regarding legal lending limits to a single borrower into line with federal law.

Since state legal lending limits are affected by declining property values and the economy, Cagle said they keep worthy customers from renewing loans.

Mills’ bill will allow consumers in good standing to preserve a positive relationship with a Georgia bank without changing lenders, Cagle said.

The bill gives the Georgia Department of Banking and Finance the authority to review the loan to make sure it was renewed appropriately, Cagle said.

Mills did not return calls seeking comment Thursday.