Nonbank lenders will have to stop selling the unguaranteed portion of 7(a) small-business loans unless the Small Business Administration meets a looming congressional deadline to let banks enter the business.

A handful of nonbank lenders such as the Money Store and G.E. Capital are permitted to sell about a quarter of each 7(a) loan that isn't guaranteed by the SBA. Federal legislation in October gave banks the go- ahead to enter that market, too.

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