WASHINGTON-The House last week passed by unanimous consent afunding package for the Small Business Administration's popular7(a) lending program (H.R. 4062). Changes in the funding structurewould provide an additional $3 billion to the program, which SBA istrying to take out of the appropriations process. Earlier thisyear, the 7(a) program was shut down for about a week becauseappropriations were held up. Under the House passed version of thebill, SBA could lift the $750,000 cap on 7(a) loans to its usual $2million. It would also permit lenders to use the SBA Expressprogram for loans up to $2 million, as opposed to the current$250,000. SBA Express allows lenders to use their own paperwork forloan applications, but lowers the guarantee to 50% from thepotential of 75%. “This bill will help create a bigger, better 7(a)program,” SBA Administrator Hector Barreto said. “By increasing the7(a) program's lending authority, the SBA will be able to guaranteean additional 30,000 loans this year alone – loans which willcreate or retain half a million jobs for hard working Americans.”Barreto recently testified before the House AppropriationsSubcommittee on Commerce, Justice, State, Judiciary, and RelatedAgencies on SBA's funding. The legislation is now in the Senate'shands. SBA is trying to move its 7(a) program out of theappropriations process, as it has done with its other programs, toprevent another lending stoppage.