"This report discusses the rationale provided for the 7(a) program; the program's borrower and lender eligibility standards and program requirements; and program statistics, including loan volume, loss rates, use of proceeds, borrower satisfaction, and borrower demographics. It examines issues raised concerning the SBA [Small Business Administration]'s administration of the 7(a) program, including the oversight of 7(a) lenders and the program's lack of outcome-based performance measures. It examines congressional action taken during the 111th Congress to enhance small businesses' access to capital, including providing more than $1.1 billion to temporarily subsidize the 7(a) and 504/CDC [504/Certified Development Company] loan guaranty programs' fees and to temporarily increase the 7(a) program's maximum loan guaranty percentage to 90% (funding was exhausted on January 3, 2011); increasing the 7(a) program's gross loan limit from $2 million to $5 million; and establishing an alternative size standard for the 7(a) and 504/CDC loan programs. This report also examines legislation introduced during the 112th Congress to continue the fee waivers and increase the 7(a) program's SBAExpress and recently discontinued Patriot Express programs' maximum loan amounts. It also discusses the Obama Administration's decision to waive the upfront loan guaranty fee and ongoing servicing fee for 7(a) loans of $150,000 or less approved in FY2014. The SBA is also waiving the upfront, one-time loan guaranty fee for all veteran loans under the SBAExpress program (up to $350,000) from January 1, 2014, through the end of FY [Fiscal Year] 2014 (called the Veterans Advantage Program). The Administration has also announced that it plans to continue these fee waivers and to waive 50% of the upfront loan guaranty fee on all non-SBAExpress loans to veterans exceeding $150,000 in FY2015."
CRS Report for Congress, R41146