The troubled SBA 7(a) loan program had been revived by legislation passed by congress last night. Previously, loans had been limited to $750,000 and it had been reported that the entire loan program was on an “indefinite holiday.”
The new changes include:
1) lifting the $750,000 loan cap and allows combination or “piggyback” loans
2) the 7(a) guaranteed limit is raised from $1 million to $1.5 million
3) the size of loans lenders can make voluntarily under the SBAExpress program has increased from $250,000 to $2 million.
This is good news for small business and business planners, allowing for the continued growth of entrepreneurship.