X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-The House last week passed by unanimous consent a funding package for the Small Business Administration’s popular 7(a) lending program (H.R. 4062). Changes in the funding structure would provide an additional $3 billion to the program, which SBA is trying to take out of the appropriations process. Earlier this year, the 7(a) program was shut down for about a week because appropriations were held up. Under the House passed version of the bill, SBA could lift the $750,000 cap on 7(a) loans to its usual $2 million. It would also permit lenders to use the SBA Express program for loans up to $2 million, as opposed to the current $250,000. SBA Express allows lenders to use their own paperwork for loan applications, but lowers the guarantee to 50% from the potential of 75%. “This bill will help create a bigger, better 7(a) program,” SBA Administrator Hector Barreto said. “By increasing the 7(a) program’s lending authority, the SBA will be able to guarantee an additional 30,000 loans this year alone – loans which will create or retain half a million jobs for hard working Americans.” Barreto recently testified before the House Appropriations Subcommittee on Commerce, Justice, State, Judiciary, and Related Agencies on SBA’s funding. The legislation is now in the Senate’s hands. SBA is trying to move its 7(a) program out of the appropriations process, as it has done with its other programs, to prevent another lending stoppage.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.