SBA loans to resume after Congress raises lending limit

NEW YORK (AP) — Small businesses will soon be able to get loans approved again by the federal government.

The House has passed and sent to President Barack Obama a bill raising the lending authority for the Small Business Administration's biggest loan program, known as the 7(a) program. Loan approvals went on hold Thursday when the SBA reached its $18.75 billion annual limit for loan guarantees.

The bill, passed earlier by the Senate, raises the lending limit to $23.5 billion.

The SBA reached its annual limit with more than two months left in the government's fiscal year. The agency has had an influx of applications because owners are willing to take on more risks including loans after cutting back during the recession and its aftermath.