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.
Noah is currently the COO at Palo Alto Software, makers of the online business plan app LivePlan. You can follow Noah on Twitter.
