As the Small Business Administration next week caps the size of its popular 7(a) loans, lenders say the move could drive some banks from the program and reduce credit to businesses.

The cap, effective Jan. 1, will limit the size of a loan guaranteed by the SBA to $500,000 -- down by one-third from the current maximum of $750,000.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.