Caps Off to You!
More small-business opportunities can flow freely now that the SBA has finally removed its 7(a) loan cap.
To talk to insiders who labored to lift the $500,000 cap from the SBA's 7(a) loan program, the process held enough drama to last its players a good long while. The SBA imposed the limit in October after President Bush's proposed fiscal 2003 budget cut in half the amount of loans the agency would be able to guarantee for the year.
But after five months of vigorous lobbying by the U.S. Chamber of Commerce as well as a coalition of small-business organizations--and thanks to the introduction of a new econometric model that will forecast the costs of the 7(a) loan program much more accurately--the SBA finally restored the maximum loan amount to $2 million earlier this year.
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