Small Business Administration 7(a) Loan Guaranty Program

Author / Creator

Library of Congress. Congressional Research Service

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Online

Summary

This report is one in a series of updates. For the most recent coverage of this report series, please see 14-R4-1146i in the 2014 issue. Provides overview of SBA 7(a) program authorized under the S...

This report is one in a series of updates. For the most recent coverage of this report series, please see 14-R4-1146i in the 2014 issue.

Provides overview of SBA 7(a) program authorized under the Small Business Act of 1953, which provides loan guaranties to lenders to encourage them to provide loans to small businesses that might otherwise be considered risky investments. Discusses rationale provided for the 7(a) program, borrower and lender eligibility standards, program requirements, and program statistics, including loan volume, appropriations for subsidy costs, administrative expenses, use of proceeds and borrower satisfaction, and demographics. Examines prior Congressional action taken to assist small businesses in gaining greater access to capital, and considers issues raised concerning SBA administration of the 7(a) program, including oversight of 7(a) lenders and lack of outcome-based performance measures. Assesses Obama Administration proposals and legislation in the 111th Congress, including P.L. 111-5, the American Recovery and Reinvestment Act of 2009, and P.L. 111-240, the Small Business Jobs Act of 2010, both to authorize changes to the 7(a) program so as to enhance small business access to capital. Summarizes legislative activity in the 112th and 113th Congresses.

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