ABA, Trade Groups Urge Congress to Raise Small Business Program Cap
ABA and a coalition of trade groups yesterday urged congressional leaders to increase the authorization level for the Small Business Administration’s 504 loan program. Demand is expected to reach the program’s authorization cap of $7.5 billion in early summer, likely June, the groups said. Without congressional action, the program would be unavailable to small businesses for an entire quarter of the fiscal year until the authorization level resets, they added.
The program previously reached its congressionally authorized cap on Sept. 7, 2021, and SBA was unable to approve new 504 loans until the program’s authorization level reset on Oct. 1. That three-week shutdown of the program caused a number of issues for small-business borrowers, including the loss of real estate and endangered escrow, the groups wrote. Read the letter.