The SBA reached it’s $18.75 billion limit in lending authority on July 23, 2015, leaving hundreds of small business loans approved, but without funding. On July 27, 2015, Congress passed a bill increasing the SBA’s lending authority to $23.5 billion through the end of the fiscal year, in order to help fulfill these loans. The bill also extends loan fee waivers for veterans and requires the SBA to re-examine its outreach to women veterans.
The 7(a) loan program is the SBA’s largest lending program, guaranteeing loans made to small businesses up to $5 million. In anticipation of the budget’s expiration, the Association for Enterprise Opportunity (AEO) organized support from the small business and lending communities, urging Congress to act quickly.
“Entrepreneurs and banks would have been left in the lurch until October, had the Congress failed to extend lending authority for the program,” said AEO President and CEO, Connie Evans, in an email announcing the bill had passed. “We are pleased Congress acted quickly in a bipartisan effort and thank all the other organizations for joining us in support.”
Photo Credit: Mark Moz, Flickr