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Senate Passes Continuing Resolution to Extend Funding Through December 11
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(September 30 6:00 PM ET) This evening, the Senate passed a Continuing Resolution (CR) to extend current government funding levels through December 11. This comes after the House passed this measure last week after scrambled negotiations. It is now awaiting signature from President Donald Trump, which will need to happen by midnight in order to avoid a government shutdown. As of now, it is expected that he will sign the CR.

As it pertains to 7(a) lending, the CR puts the 7(a) loan program in a good spot. First, it includes a special apportionment anomaly for the 7(a) loan program in order to prevent a temporary shutdown of the program during a CR. The anomaly allows SBA to apportion as much funding as needed for lending, rather than complying with typical CR requirements for programs which, in the case of the 7(a) program, would limit day-to-day loan volume based on the length of the CR. Second, the CR includes $15 million in appropriations to support $30 billion of authorization for the 7(a) program for FY2021—as it currently stands, this is considered sufficient for 7(a) volume for FY2021 without concern for insufficient funding or authorization. However, if and when Congress were to pass enhancement provisions for the 7(a) program (such as increased guarantees and fee waivers), Congress would need to address both increased authorization and appropriations caps to support increased lending, which would be the normal course of action in the event of such legislative changes. NAGGL continues to advocate for these types of enhancement provisions to the 7(a) program.

As it relates to ongoing negotiations for a next COVID-19 package that would hopefully bring much-needed fixes to PPP, Section 1112 payment extensions, and 7(a) enhancement provisions, there are continued conversations, though negotiations appear largely stalled as we approach the general election. As always, NAGGL will continue to keep you monitored if and when this should change. 

 

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