Congress gave the SBA the power to increase the yearly limit on its lending. The number of business owners who may get government-backed loans may grow. What about business funding from alternative lenders? Read this article and you’ll know.

Congress Passes Lending Limit Increase

Earlier in June, Congress voted for enabling the Small Business Administration (SBA) to add to the annual limit on SBA lending (popular 7(a) loan program) by 15%. Thanks to the bill, the SBA gets government backing of its loans. These are made by partner banks, credit unions, as well as other financial institutions.

The SBA was founded in 1953. The Administration is called to aid, counsel, and assist small business owners’ interests. Also, it’s built to promote free enterprise and strengthen the US economy in general.

The SBA 7(a) program has been a great success in providing access to working capital for small business owners. The program has gained that much popularity because merchants can use the funds for various business purposes. These may include building purchases, business purchases, equipment or inventory purchases, as well as debt refinancing.

According to Beth Goldberg, New York District Director at SBA, the passage of the Small Business 7(a) Lending Oversight Reform Act of 2018 will make SBA stronger. Also, it’ll provide more programmatic oversight to the Administration. Besides, it’ll authorize the SBA to increase lending by up to 15%.

The current law allows the SBA to ask Congress to raise the ceiling. The limit for the fiscal year that ends September 30 makes up $27.5 billion.

Need Business Funding? President Trump Signed the Bill Into Law

President Trump signed into law the bill. So, the Small Business 7(a) Lending Oversight Reform Act will strengthen and better one of the basic SBA loan programs developed to provide financing for entrepreneurs.

It was championed in the Senate by Senators Jim Risch (R-Idaho) and Jeanne Shaheen (D-N.H.), and in the House by Representatives Steve Chabot (R-Ohio) and Nydia Velazquez (D-N.Y.).

According to a recent report on small business lending in the US, some of the biggest “FinTech” small business lending platforms in the US-funded about $10 billion in online loans during 2015 – 2017. $37.7 billion in gross output was generated. 358.911 jobs and $12.6 billion in wages were created in US communities.

The business financing from online small business lenders is surging in popularity. It fills a huge funding gap for small businesses across industries, as a new study from NDP Analytics reports. NDP Analytics is a Washington, D.C.-based economic research firm.

The number of merchants interested in alternative online lenders is growing. Online lenders are a striking option both for low and, especially, high-risk businesses. All you need is to find a reputable alternative online lender and get approved for business funding easily.

Look for an alternative online lender that offers the lowest possible rates in the industry and guarantees the best business financing solutions tailored to your own business needs.

The mentioned study reveals that the dollar amount of loans coming from just 5 top online small business lenders grew by 50% in 3 years, reaching $3.9 billion in 2017 from $2.6 billion in 2015.

Read Also :

• Tips for Funding Your New Business Startup
• The line of Credit or Term Loan: Which Type of Funding Fits Your Business?
• 5 Steps of Growing Your Startup Business in a Sustainable Way