Popular loan program is discontinued
The Small Business Administration was forced to temporarily discontinue one of its loan programs that helped provide capital to start-up businesses. The 7(a) loan guarantee program provided financing to companies that couldn't get conventional bank loans because they were too new to have established credit histories. The SBA would guarantee up to 85% of a bank's loan to such businesses.
The recovering economy created a surge in demand for SBA loan guarantees, forcing the agency to shut down the program until additional funds are available.