7(a) program restored.

Author:Jones, Joyce
Position:Washington Report - Brief Article
 
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Following months of debate between congressional supporters of the Bush administration and bipartisan supporters of the 7(a) loan program, the House voted to restore funding to the Small Business Administration's most popular program. In July, $79.1 million (matching 2003's amount) was reallocated to the program after it ran out of money in January.

The Bush administration proposed the SBA support its costs by increasing fees to both borrowers and lenders. Opponents of that model charged that lenders would have opted out and borrowers would be left with few options, Tony Wilkinson, president and CEO of the National Association of Government Guaranteed Lenders Inc., explained that "as costs get too high, lenders will start to leave. And if borrowers have to pay too high a fee, they may just not borrow money and borrowers who are on the fringe may get priced right out of the program."

Following his July appearance at the National Urban League's conference, President Bush announced...

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