The cap on 7(a) lending was reached on July 23rd, with only two months left in the fiscal year, leaving hundreds of small businesses on a waitlist for secured government funding. Within five days, the Senate then the House voted to raise the cap, with President Obama signing it Tuesday morning. This swift response to raising the cap is vital to small business growth, and has allowed small businesses access to necessary capital. The Small Business Administration, along with Accion, applaud government officials for their quick reaction time, and their ongoing support of small businesses.
In response to the cap being reached on 7(a) lending, the House of Representatives amended House Bill H.R. 4299, which will increase the Small Business Administration’s (SBA) program cap to $23.5 billion for the current fiscal year. This is great news for entrepreneurs nationwide looking to secure financing for their businesses. The SBA’s program cap of $18.75 billion being reached early in the year, up 25% from a year ago, shows sign of an improving economy. Giving small business owners access to secure, low interest capital is critical in the progression of microfinance. It’s business as usual with the Small Business Administration 7(a) lending now resuming.
For updates on the Small Business Administration, head over to https://www.sba.gov/