SBA Loans at Record High SBA’s flagship 7(a) loan program is on a record-setting pace for the second straight year in spite of increased fees for borrowers and lenders, the agency reported. Administrator Hector Barreto said the continuing record demand for government-guaranteed loans “demonstrates the effectiveness of the self-funded footing on which the president has placed the loan program, and the confidence that lenders have in its stability.” The House voted last month to restore a subsidy for the loan program so that fees could be reduced. The provision is part of the Science, State, Justice and Commerce Appropriations bill, now pending in the Senate. The amendment’s sponsor, Rep. Nydia Velazquez (D-NY), said the fee increase has doubled the cost to borrowers, adding from $1,500 to $3,000 to the upfront cost of a loan. She said the number of lenders actively participating in the program has fallen by 50% and the average size of loans has shrunk. (SAA, 6/24) SBA said the number of loans under the 7(a) program during the first three quarters of this fiscal year grew by 21% over last year, to more than 71,000, and the loan amount grew 19.5% to $11 billion. “We had a record year for this loan program a year ago, and we’re going to set another record in 2005,” Barreto said in a statement.