President Signs into Law SBA 7(a) Cap Increase
President Barack Obama signed into law an ICBA-advocated increase in the funding cap for the Small Business Administration’s 7(a) guaranteed loan program. The law, which allows the program to continue operating, raises the cap from $18.75 billion to $23.5 billion and ensures all 7(a) loans are funded for the rest of the fiscal year ending Sept. 30.
The SBA last week suspended the program, which is funded solely by user fees, after it met its statutory limit. ICBA worked directly with Congress to fast-track this legislative fix, noting that community banks make up the majority of SBA lenders and that no taxpayer dollars are appropriated for the program.
ICBA thanks Sens. David Vitter (R-La.), Jim Risch (R-Idaho) and Jeanne Shaheen (D-N.H.) as well as Reps. Steve Chabot (R-Ohio) and Nydia Velázquez (D-N.Y.) for their support on this critical issue. Read ICBA Release.