As reported by the Denver Business Journal, the Small Business Administration will see an increase in its lending charge for the flagship 7(a) loan program following signing of the temporary funding bill by President Obama on Friday. With the legislation in place, the 7(a) loan program will maintain an $18.5 billion budget for the remainder of this year and 2015.
The timing of the increase could not be more helpful, as lending is on record pace for this year since 2011 with more than $17.3 billion in 7(a) loans approved as of September 5. By comparison, the same time period in 2013 showed only $15.6 billion in 7(a) loan approvals, though the remainder of September saw a lending surge with the impending government shutdown. The increasing demand for SBA loans have not stifled Washington parties, including Tony Wilkinson, president and CEO of the National Association of Government Guaranteed Lenders. Wilkinson commented to the Denver Business Journal that the legislation will aid his organization in being able to help significantly more small businesses in 2014 and 2015.
To read the Denver Business Journal article, please click here.