Caps Off to You!
More small-business opportunities can flow freely now that the SBA has finally removed its 7(a) loan cap.
By C.J. Prince •
Opinions expressed by Entrepreneur contributors are their own.
To talk to insiders who labored to lift the $500,000 cap fromthe SBA's 7(a) loan program, the process held enough drama tolast its players a good long while. The SBA imposed the limit inOctober after President Bush's proposed fiscal 2003 budget cutin half the amount of loans the agency would be able to guaranteefor the year.
But after five months of vigorous lobbying by the U.S. Chamberof Commerce as well as a coalition of small-businessorganizations--and thanks to the introduction of a new econometricmodel that will forecast the costs of the 7(a) loan program muchmore accurately--the SBA finally restored the maximum loan amountto $2 million earlier this year.
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