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If Congress fails to act swiftly, most lending supported by the SBA will shut down for much of the next two months. This would undermine recent strength in a vital component of the American economy.
July 21 -
So far, Washington has generally smiled on tech-driven lenders such as Lending Club and OnDeck. But many in the fast-growing industry are now bracing for closer scrutiny.
May 15 -
There is optimism that the Small Business Administration will be allowed to approve a larger volume of SBA loans in fiscal year 2015 compared to previous years. Bankers are especially supportive of plans to continue waiving fees for smaller 7(a) loans.
March 11
Rep. Nydia Velazquez, D-N.Y., ranking member of the House Small Business Committee, introduced a bill Tuesday that would allow the Small Business Administration to provide backing for more loans.
The legislation would raise the ceiling for the SBA's primary loan program to $23.5 billion, from $18.75 billion. Barring congressional action, the agency's 7(a) small business lending program is due to reach the current lending limit allowed for this fiscal year as early as next week.
The bill is similar to legislation introduced by Sen. Jim Risch, R-Idaho, which passed the Senate Small Business and Entrepreneurship Committee in April with bipartisan support. The Senate bill would authorize an increase in the loan volume cap to $20.5 billion for the rest of the federal government's 2015 fiscal year ending Sept. 30, and to $23.5 billion for the next fiscal year.
"It would be inexcusable for Congress to leave out in the cold small firms looking to build a new facility or purchase equipment," Rep. Velazquez, also a member of the House Financial Services Committee, said in a press release. "This initiative creates jobs, fuels growth and does not cost the taxpayer a cent. It would be nothing short of legislative malpractice to not extend it through the summer."
A spokesperson for House Small Business Committee Chairman Steve Chabot, R-Ohio, said he was still weighing his options regarding the SBA's lending program.
