ABA Encourages Prompt Continuation of SBA 7(a) Loan Program

With the Small Business Administration’s popular 7(a) loan guarantee program having maxed out its $18.75 billion cap two months before the end of the federal fiscal year, ABA today encouraged Congress to pass a prompt increase in the 7(a) lending cap.

“Over the years, the SBA’s 7(a) program has successfully served as the premier small business government loan program for many start-up and growing small businesses that lack sufficient access to capital,” ABA said. “The 7(a) program has been a critical lending tool for traditional banks to help meet the credit needs of small businesses.”

The House is set to vote today on a measure expanding funding for the program. The Senate Small Business Committee last week approved a similar amendment, and the Senate is expected to vote on the overall bill before its August recess.