Another Scuffle Over 7(a) Loan Caps
Jun 2nd, 2008 | By Dawn Rivers Baker | Category: Politics & PolicyYes, fans, there’s yet another spat over loan caps going on, this time over the Community Express pilot version of the 7(a) loan program. On the surface, at least, the matters appears to be fairly straightforward. The Small Business Act has a provision in Section 7(a) that prohibits more than 10% of the number of loans in any fiscal year to be awarded as a part of a 7(a) pilot program. So far during fiscal 2008, however, loan volume is down a reported 18% below 2007 levels, while Community Express is already up to 12% of the number of 7(a) loans approved this fiscal year. In response, the SBA has had to rein in Community Express to keep it at or below that 10%. All will be fixed if pending legislation makes the program permanent and, meanwhile, this very micro-friendly lending program gets a bit more attention than usual — which is not a bad thing.
