Business Optimism Drains SBA Loan Funds
With two months to go in its fiscal year (ending Sept. 30), the SBA has run out of money to loan. Because of the surge in borrowing, the SBA reached its $18.75 billion limit for the year. Barring an act of Congress, small businesses will have to wait until Oct. 1 to have their loans approved.
Last year the SBA didn’t reach its limit until September and Congress was able to raise the limit.
Businesses can still apply for loans and banks can send them on to the SBA. There they will be held in a queue for processing until more loan money is available.