Small business lenders can permanently approve small loans without federal review

The US Small Business Administration made it permanent for certain private lenders, called Certified Development Companies, to approve small business loans without direct federal review. This means small businesses can get loans of $500,000 or less faster, because these lenders do not need to wait for federal sign-off.

The federal government used to review every small business loan. Now, for smaller loans, it trusts certain private lenders to do the job themselves. This cuts down on paperwork and waiting times for small businesses seeking capital. It also means the federal government is shifting some of its oversight burden to these private lenders.