The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC.
The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency's existing products, Guzman said in a phone interview.
The project is part of the SBA's efforts to broaden its flagship lending program for American small businesses.
Through its 7(a) loan program, the SBA provides guaranties to lenders to encourage them to extend loans to small business owners.
The program backed more than 57,000 loans worth $27.5 billion last year, a 7% increase from 2022; most of those loans were for less than $350,000.
Persons:
Isabel Casillas Guzman, Guzman
Organizations:
U.S, Small Business Administration, CNBC, SBA