SBA Lending In Jeopardy

The Small Business Administration may put its most popular lending program on hold in a matter of weeks. The SBA is nearing the legal maximum on the amount of loans it can back. The 7A program will reach its $18.75 billion limit by the end of July or early August, two months before the end of the fiscal year. If that happens, Congress would have to raise the limit. SBA Administrator Maria Contreras-Sweet last month asked Congress to increase the amount to $22.5 billion. So far, lawmakers have not budged. They’re about to go on recess in August. The fourth quarter is usually the busiest time of the fiscal year for the program. It backs loans that small businesses can use to buy or operate a company, buy or improve equipment or property, or refinance business-related debt.