SBA Lifts $500,000 Loan Cap

first_imgAdministrator Hector V. Barreto of the U.S. Small Business Administration lifted a 5-month cap on SBA-backed loans and invited participating lenders to resume submitting applications for guaranteed loans up to the $2 million statutory limit.The decision was made today after President Bush signed recently adopted legislation that allows the agency to implement its revised econometric subsidy model, which more accurately forecasts the actual costs of the 7(a) loan program. The model will be applied retroactively to the beginning of the current fiscal year.The econometric model, in combination with appropriation levels provided in the FY 2003 budget, will allow the agency to approve more the $9.4 billon 7(a) loans during the current year, plus $1.8 billon in STAR loans that have already been made.The decision to lift the loan cap is effective immediatelylast_img read more