See article below that I wrote for Fox and Hounds on the 7a cap issue. Note in the article I say that the cap will be hit in early August. I was wrong as there has been a run on 7a loans. Monday and Tuesday there was about $1 billion in loans. The authorization for the year is about $19 billion. I just got word this morning that it is expected the cap on 7a loans will be hit today. There are a lot of fixes that have been proposed but as of now none are in place.
This is a disgrace.. The 7a program is the most important loan program at the SBA. What is more amazing is that there is no cost to government to increase the authorization. It is politics at its worst.. The disruption this will create if this does not get fixed quickly is frightening.
Are any of you impacted by this?
Fox&Hounds discusses and explains the confluence of politics and business in California through our blog, featuring opinion pieces written by leaders from across the state published daily. Read below to see what's new on the site
Small Business Loan Authorization Program Could Close Down
by Scott Hauge
I have seen first-hand the kind of struggle that today’s small businesses face in order to survive in this economy, especially here in California. When looking for capital, many small businesses hear “no” and many banks run from small businesses as one of the riskiest investments in the market. That is why the survival of the Small Business Administration’s (SBA) 7(a) loan program is critical as a job-creating access to capital program. However, the program is about to reach its authorized lending cap annually set by Congress and as a result, will most likely shut down sometime in early August, possibly sooner. Before Congress goes back to the districts over August recess, I ask you to join me in encouraging them to keep this important lifeline open to Main Street America.
Click link for full article: http://www.foxandhoundsdaily.com/page/2/
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