Back in January we wrote here and here that the U.S. Small Business Administration had temporarily run low on funding, due to Congress not passing a budget bill. An interim emergency bill alleviated some of the problem. But since January, loans were capped at US$750,000.
Well, now that loan cap has been removed, returning the maximum size of a section 7(a) small business loan to US$2 Million. This is the result of Congress passing, and President Bush this week signing, a bill increasing funding to the SBA.
Here at Small Business Trends we are very glad to hear this news. The U.S. Small Business loan programs have done untold good for smaller enterprises. Consider these statistics: The SBA will have funding of US$12.5 Billion to make small business loans in 2004. The SBA will reach up to 90,000 small businesses with its loans in 2004, a figure which translates into having an impact on half a million jobs.