Main Street Wednesday – Congress Fully Funds SBA Through September 30
September 24, 2014
By Bob Coleman
Editor, Coleman Report
No lending holiday is on the horizon this year as Congress has bumped SBA 7(a) funding levels to a record $18.5 billion for the balance of FY 2014 and for FY 2015.
Our friend Kent Hoover writes, “As of Sept. 5, more than $17.3 billion in 7(a) loans had been approved this fiscal year, which ends Sept. 30. That compares with $15.6 billion during the same period in fiscal 2013, but 7(a) lending surged last year in the final weeks of September as a government shutdown loomed. Nearly $18 billion in 7(a) loans ended up being approved in fiscal 2013.
“Large loans are a big reason behind the growth in 7(a) loans. Congress raised the maximum size of 7(a) loans from $2 million to $5 million in 2010. So far this year, the SBA has approved 1,676 loans of more than $2 million, totaling more than $5.1 billion, or 29 percent of total 7(a) lending volume. That’s up from $4.3 billion, or 27 percent, during the same period a year ago.”