Critical Small Business Loan Program Cut
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/critical-small-business-loan-program-cut/The Bush Administration has cut the federal government’s largest and most important small business loan program by more than 60 percent. This year, the program will back only $4.4 billion in loans, compared to nearly $12 billion last year.
The program, known as 7(a), is run by the Small Business Administration and guarantees loans of up to $2 million made to small businesses. It is the largest source of long-term working capital for small businesses in the nation, accounting for some 40 percent of available financing.
