Congress Approves Funding for SBA 7(a) Loan Program

The Senate today approved a $99 million subsidy to fund the Small Business Association’s 7(a) loan program for the 2020 fiscal year, successfully avoiding a shutdown of the program that would have otherwise taken place on Oct. 1. The House approved the funding last week.

ABA, through participation in the Small Business Access to Capital Coalition, called on congressional leaders earlier this year to address the 7(a) program funding gap. The association also raised several concerns about the subsidy calculation process, which they argued has unnecessarily driven up the cost of 7(a) loans for borrowers and lenders.