The House passed a stopgap spending package that includes extensions of the Small Business Administration’s 7(a) guaranteed lending program and the National Flood Insurance Program.
The spending bill, which passed 301-123, reauthorizes the programs through Nov. 21. The measure now heads to the Senate, which is expected to approve it next week to avoid allowing these and other federal programs to expire Oct. 1.
Ahead of the Senate vote, ICBA urged the chamber to avoid an abrupt Oct. 1 shutdown of the SBA 7(a) program by including needed additional funding in any stopgap spending legislation it passes. In a letter to Senate leaders
, ICBA noted that an extension is recommended by the White House.
ICBA said that while policymakers should adjust a flawed federal subsidy rate that overestimates defaults—as detailed in American Banker
—they should in the meantime approve the funding to avoid needless disruptions to small-business lending and economic growth.