Congress derails more SBA funding

Northwestern Financial Review, Dec 15-Dec 31, 2002

[national summary]

Congress adjourned without restoring critical funds available through the Small Business Administration - the government's largest loan program. Due to a reduction in fees collected by the SBA, the amount of loans guaranteed by the agency's flagship program currently stands at $5 billion, down from $12 billion last fiscal year. In October, the SBA capped loans made through the program at $500,000, down from $2 million last year. Advocates say this could delay or prevent small firms from investing in new equipment or initiatives. Legislation to restore the amount of government-guaranteed loans available was approved by the Senate, but failed in the House of Representatives.