SBA Halts Funding New Loans, Hits Cap

As a result, SBA is forced to suspend its 7(a) small business lending until the start of the new fiscal year on October 1, 2015, or until such time as the 7(a) loan authority is increased by Congress. Loan approvals went on hold Thursday when the SBA reached its $18.75 billion annual limit for loan guarantees.

But the Senate took lightning-fast action to raise the SBA lending limit in less than a day, marking a stark contrast with Congress’ protracted battle over another federal loan guarantee agency, the U.S. Export-Import Bank.

Indiana You can introduce.S. President Barack Obama on Tuesday agreed laws revamping national outstanding loan pledges for thin organisations that were usually worn-out a week ago along with increasing overall cap on the show. Last year, the SBA didn’t approach the limit until September, but Congress raised the ceiling before it was reached. Applications that have been processed are now in a queue and awaiting approvals.

Correction: The main loan guaranty program resumed Tuesday.

Customer service representatives with SBA are available at the Disaster Loan Outreach Center to answer questions about the disaster loan program and help people complete their applications.

Loans up to $200,000 are available to homeowners to fix or replace damaged or destroyed real estate, and homeowners and renters are eligible for loans up to $40,000 to fix or replace damaged or destroyed personal property.

Stronger-than-expected demand for SBA-backed loans, fueled by an improving economy, meant that the program was exhausted sooner than expected.