March 27, 2018
By Bob Coleman
Editor, Coleman Report
CORRECTED COPY: SBA Hot Topic Tuesday — Congress Passes, President Fully Funds SBA Budget for 2018
Buried in last week’s Omnibus Appropriations Act of 2018 was passage of SBA’s budget for 2018.
SBA 7(a) and SBA 504 budget authority will be sufficient to meet demand through September 30, 2018.
- SBA 7(a) budget authority for FY 2018 is $28.5 billion.
- SBA 504 budget authority for FY 2018 is $15 billion, half set aside for refi.
Also, the Administrator has the authority to unilaterally increase loan levels by 15% if needed.
In the weeds stuff:
- SBA 7(a) and 504 operate at a zero subsidy. All loan losses are covered by borrower, lender, CDC and secondary market sale fees.
- The total amount of fiscal year 2018 funding for SBA is $887 million – the same funding level as fiscal year 2017. (This amount includes $186 million in SBA disaster loan funding that was approved by Congress earlier in the year).
- The SBA funding level is $60.5 million more than the Administration’s request of $826.5 million for fiscal year 2018 and $53 million more than the Administration request of $834 million for fiscal year 2019.
An earlier version of this post had an embarrassing typo and irrelevant source material. My apology.