Bipartisan Letter Urges SBA to Reserve Funds for Regular 7(a) Loans

Noting that the recent bill adding funds to the Paycheck Protection Program as part of the Small Business Administration’s 7(a) loan program did not establish separate authorization caps, a bipartisan group of senators yesterday urged SBA to provide an “immediate administrative fix” to preserve regular 7(a) lending.

“[T]he 7(a) program would be unable to continue operating since separate authorization caps were not established and the amount appropriated in H.R. 266 provides funding to commit the entire authorized amount to PPP loans, leaving no lending authority for 7(a),” said the letter, which was led by Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.), who are chairman and ranking member, respectively, of the Senate Small Business Committee.