With Lending Cap Nearly Reached, Congresswoman Adams Cosponsors Critical Bill to Increase Support for More Small Businesses
Washington, DC – Congresswoman Alma S. Adams (NC-12) a member of the House Small Business Committee and Ranking member of the Subcommittee on Investigations, Oversight and Regulations today announced her co-sponsorship of H.R. 3132, emergency legislation that would raise the lending cap for the U.S. Small Business Administration’s (SBA) 7(a) program. SBA’s 7(a) program is set to reach a statutory lending cap as early as July 28th.
According to the U.S. Small Business Administration Office of Advocacy, there are more than 800,000 small businesses in North Carolina that employ more than 1.5 million North Carolinians. Just this year alone, SBA’s 7(a) program supported more than $38 million in small business loans for 69 companies in North Carolina’s 12th District.
“I am proud to stand with several of my colleagues on the House Small Business Committee and many other colleagues in Congress to support raising SBA’s 7(a) lending program’s cap,” said Congresswoman Adams. “SBA has helped so many of our small business owners start and grow their businesses. Just this year alone, SBA’s 7(a) program supported more than 69 small businesses in my District. If we don’t act, we are stifling job growth and hurting our economy. I urge my colleagues to swiftly pass this legislation to allow the SBA to continue to support our businesses.”
SBA’s 7(a) program helps American small businesses access capital by guaranteeing loans from banks. SBA’s lending cap for fiscal year 2015 is $18.75 billion and with an increase in small businesses seeking credit, it is set to reach its cap as soon as July 28th. The emergency legislation co-sponsored by Congresswoman Adams would raise the lending cap to $23.5 billion. Raising the lending cap would allow the SBA to continue to help small businesses access credit. Without the extension, SBA would have to stop supporting small business lending until the start of the next fiscal year; and it is estimated that the U.S. economy would lose more than 36,000 jobs in just two months, as a result.