Congress considered, but
failed to enact, legislation to strengthen the Small Business
Administration’s loan programs.Lending through the SBA’s primary loan
programs dropped significantly in fiscal 2008, which ended Sept. 30. The
SBA approved 69,434 7(a) business loans, down 30 percent from the previous
year. Total dollar volume was $12.7 billion, down 11 percent.
The number of 504 loans, which finance real estate and other fixed
assets, dropped 17 percent to 8,883 in 2008 and the dollar amount fell 16
percent to $5.3 billion.
The House passed legislation Sept. 29 on a 374-6 vote that would enable
more businesses to be eligible for 7(a) loans and would make changes in
the 504 program that were sought by the certified development companies
that make 504 loans.The bill also would make it easier for small business
investment companies to determine their leverage limits.
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