The US House of Representatives Monday passed the bill, previously approved by the US Senate, to raise the the SBA’s lending authorization under the popular 7(a) to $23.5 billion, effective immediately. President Obama signed the bill on Tuesday and it became law. The SBA has resumed issuing loan approvals under the program. The SBA had hit the prior lending authorization limit with over two months left in the federal fiscal year, causing it to temporarily discontinue issuing approvals.
Here’s a statement from the SBA Administrator on the increased authorization ceiling:
WASHINGTON – U.S. Small Business Administrator Maria Contreras-Sweet issued the following statement today on approval of SBA’s 7(a) Loan Program.
“Thank you to the House of Representatives for the step it took on Monday to raise SBA’s lending authorization ceiling to $23.5 billion for our 7(a) loan guaranty program. Combined with the Senate’s action last Thursday, the SBA’s flagship lending program is back on track.
We have seen record levels of lending this year, showing us that America’s small businesses are thriving and yearning to grow. We have streamlined our processes, reduced fees, and bolstered our outreach to our lending partners.
On behalf of the Small Business Administration, and the thousands of small and growing businesses, innovators, and entrepreneurs we serve across the country, thank you to the leadership in both the House and Senate for the steps they have taken this past week. As we go forward, we will continue to work with both chambers to ensure that the SBA continues to empower American small businesses as they grow and create jobs to strengthen the nation’s economy.”