Main Street Monday – SBA Program Allocations Will Fund Through September 30
March 21, 2022
Delaney Sexton
Contributing Editor
Main Street Monday – SBA Program Allocations Will Fund Through September 30
Last week, President Biden signed the Omnibus Spending Bill providing the spending caps for the SBA’s programs, including an increase in the authorization level for the 504 program. With this increase, the 7(a), 504, and 504 debt refinance without expansion programs are expected to be funded through the end of fiscal year 2022.
504 Allocation FY22: $11 Billion
*Data as of March 11, 2022
The 504 program received $3 billion more than the fiscal year 2021 spending cap, supporting the exponential growth in 504 loan origination. The 504 debt refinance without expansion program was assigned a $4 billion spending cap, a decrease from fiscal year 2021, but it successfully funded the program throughout the end of the fiscal year 2021.
7(a) Allocation FY22: $30 Billion
*Data as of March 11, 2022
With the 7(a) spending cap, the program will be able to fund loan origination throughout the last half of fiscal year 2022. There is a slight increase in the 7(a) loan program’s total loan portfolio after a slow year in fiscal year 2021.