Small Business Administration closing costs and lender fees would shrink under the Clinton administration's fiscal 2000 budget proposal, but so would the agency's lending authority.

The budget, released Monday, proposed several key changes to the SBA's 7a loan guarantee program. It would raise to $150,000 from $100,000 the maximum loan size that qualifies for an 80% SBA guarantee. On a $150,000 loan, that would mean $120,000 was guaranteed, versus $112,500 today. The change would lower the bank's risk as well as its capital requirement.

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