We call on Congress to act as quickly as possible to follow the recommendation of SBA Administrator Maria Contreras-Sweet to raise the SBA 7(a) loan guaranty cap from $18.75 billion to $22.5 billion for the 2015 Fiscal Year. The SBA reached its current 7(a) guaranty cap of $18.75 billion on Thursday, July 23, placing its flagship program on hold for the remainder of the fiscal year unless Congress acts and the President signs this into law.
Under these circumstances, no small business will be able to receive new SBA 7(a) loan funding until October 1, 2015 at the very earliest. Until then, these businesses won’t be able to put this money into the economy or use it to hire new workers. By the SBA’s calculations, this would put $3-4 billion dollars on hold, significantly slowing small business growth and job creation.
We ask Congress and the President to raise the loan guaranty cap to $22.5 billion as swiftly as possible, so that no small business owner has to put their business growth because they can’t obtain an SBA 7(a) loan. The Small Business Administration helps more than 60,000 businesses obtain financing every year, and its flagship 7(a) loan guaranty program operates at zero cost to taxpayers. We urge you to join us in calling for Congress and the President to raise this cap and allow the Small Business Administration to continue offering 7(a) loans for the duration of Fiscal Year 2015.