From: Boston Business News

Small Business Administration loans got more room to grow under the temporary funding bill signed into law by PresidentBarack Obama Friday.

The legislation increased the SBA’s lending authority for its flagship 7(a) loan program for this year and 2015 to $18.5 billion. That’s helpful because 7(a) lending is on its fastest pace this year since fiscal 2011, when temporary breaks such as fee waivers and an increased government guarantee boosted the loan program to record levels.

As of Sept. 5, more than $17.3 billion in 7(a) loans had been approved this fiscal year, which ends Sept. 30. That compares with $15.6 billion during the same period in fiscal 2013, but 7(a) lending surged last year in the final weeks of September as a government shutdown loomed. Nearly $18 billion in 7(a) loans ended up being approved in fiscal 2013.

There’s no shutdown threat this year, just strong demand for SBA loans from small businesses.

Tony Wilkinson, president and CEO of the National Association of Government Guaranteed Lenders, noted that his members used the 7(a) program to make loans to 46,000 businesses during the week of Sept. 8.

“With this increase we will be able to help thousands more,” Wilkinson said.

Large loans are a big reason behind the growth in 7(a) loans. Congress raised the maximum size of 7(a) loans from $2 million to $5 million in 2010. So far this year, the SBA has approved 1,676 loans of more than $2 million, totaling more than $5.1 billion, or 29 percent of total 7(a) lending volume. That’s up from $4.3 billion, or 27 percent, during the same period a year ago.