SBA gets additional money to support loans
Congress increased funding for the Small Business Administration’s loan programs by $123 million this year in order to enable the agency to continue last year’s robust pace of lending, this according to The Business Journals.
With the extra money for its loan programs, the SBA will be able to back up to $17.5 billion in 7(a) loans to small businesses. It surpassed that amount in gross approvals last fiscal year, thanks to a surge in lending due to now-expired breaks on the loans. Higher government guarantees made the loans more attractive to lenders, and reduced fees made them more affordable for borrowers. As a result, the SBA approved a record $19.6 billion in 7(a) loans last fiscal year. (Some of these loans were canceled, however, keeping the program under its $17.5 billion cap.) Read more