Takai, Moulton Demand Action to Avert SBA Lending Shutdown

Press Release

Today, Congressman Mark Takai (HI-01) and Congressman Seth Moulton (MA-06) released the following statements after sending a letter to Speaker of the House John Boehner (OH-08) asking that Congress bring legislation to the floor to raise the Small Business Administration (SBA) 7(a) loan volume before Congress goes into the August work period:

"As our economy continues to recover, ensuring that our nation's small businesses have access to capital should be one of the highest financial priorities of Congress," said Takai. "If Congress doesn't act soon, the ability of our small business community to grow and thrive will be severely limited. My colleagues and I strongly urge Speaker Boehner to support one of the main drivers of our economy and to bring legislation to the floor to raise the SBA lending cap."

"Our nation's small businesses need reliable access to capital to innovate, create new products, and grow our economy," said Moulton. "Right now, Congressional dysfunction is threatening to shut down the SBA's most popular lending program. That's irresponsible. The House should pass a bill to raise the lending cap immediately so our small business owners can do what they do best: create jobs."

If immediate action is not taken, the SBA will reach the $18.75 billion legal lending cap on the 7(a) program by early August. Lenders use the 7(a) program to fund working capital and other critical needs to small businesses, and the SBA provides a backstop by guaranteeing this loan in case the borrower defaults. SBA programs like 7(a) have seen an increase in usage by small businesses, making it imperative that the lending limit be increased for this program. The Ranking Member of the House Committee on Small Business Nydia Velazquez (NY-07) has introduced legislation that will increase the cap by $5 billion.

Source