On Thursday, July 23, the Small Business Administration (SBA) announced it had reached its annual lending limit for its biggest loan program, the 7(a) loan, two months before the government’s current fiscal year ended. Consequently, applications for small business loans filed by over 1,100 potential borrowers had to be put on hold. The SBA’s lending limit for the 7(a) loan program was capped at $18.75 billion a year.
Congress moved quickly and the Senate quickly passed a bill that would raise the SBA’s annual lending cap for the 7(a) loan program to $23.5 billion. The House approved the bill on Monday, July 27, sending it to President Obama’s desk. The president is expected to sign the bill, which should then restart the application review process for those 1,100 borrowers currently in limbo by the end of the week.