Congress has raised the The Small Business Administration’s 7(a) loan programs ceiling, allowing the SBA to resume lending through its flagship program after a suspension Thursday when it hit its $18.75 billion annual limit. The U.S. Senate raised that to $23.5 billion Monday in a bill the House also passed.
The boost in the loan programs ceiling won’t cost the government money. Its cost is covered by the fees borrowers and lenders pay.
The new legislation requires the SBA to submit quarterly reports with estimates on when it will bump up against its current limit, providing advanced warning so that it won’t be necessary to suspend lending again.
As soon as it gets approval from the Office of the Management and Budget, the SBA will resujme lending via the program.
