WASHINGTON, D.C. Small businesses are in the money! The United States Small Business Administration announced that $1.4 billion in additional loan authority will be made available for small business lending for fiscal year 2003. Because of this, the lending authority in the agency's primary business loan program, 7(a), will increase to almost $11 billion.

Said SBA administrator Hector V. Barreto, "Hundreds of small business owners and entrepreneurs looking to start a business will benefit from this new loan authority. The SBA already is underwriting a record number of loans in this, its 50th year, and this new loan authority will add to our capacity to help small businesses."

The new loan authority will be made available by applying a new 7(a) subsidy model to the STAR program for fiscal year 2003. The STAR, or Supplemental Terrorist Activity Relief, program was established to assist small businesses affected by the terrorist attacks of Sept. 11, 2001, and was in effect through Jan. 11, 2003. By applying the new model to the STAR program, the estimated cost of the program declines dramatically. This frees up $12.3 million that now will be transferred to the 7(a) program to make loans to small businesses.