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The House of Representatives voted on Monday night to pass H.R. 2499 – a bill that would raise the statutory cap on the Small Business Administration's 7(a) business loan program, which hit its $18.75 billion ceiling last week. The bill was signed by President Barack Obama on Tuesday.

The House cleared the bill by a voice vote Monday before adjourning for the night; it had already been approved by the Senate. The legislation will raise the ceiling to $23.5 billion for fiscal 2015.

The SBA had reported that, due to stronger-than-anticipated demand for 7(a) loans, the program ran out of money last Thursday with more than two months left in the current fiscal year.

Last week, NAFCU Vice President of Legislative Affairs Brad Thaler urged House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., in a letter to take quick action to raise the ceiling.

Lifting the statutory cap would not require new funds to be appropriated because the program sustains itself through fees paid for the guarantees.

In February, NAFCU and SBA formalized a national partnership to encourage more credit unions to increase their lending to member-small businesses through SBA micro-loan programs. Each SBA-guaranteed loan dollar from a credit union is excluded from the credit union's member business loan limit, allowing the credit union to make the most of its member-business-lending authority.