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Cap for SBA's flagship guaranty program raised to $23.5 billion

Maria Contreras-Sweet, Small Business Administration Administrator, speaks at a small business roundtable discussion last year.
Paul Morigi | Invision | AP
Maria Contreras-Sweet, Small Business Administration Administrator, speaks at a small business roundtable discussion last year.

Funding for the Small Business Administration's main loan guaranty program resumed on Tuesday after Congress raised the program cap to $23.5 billion.

The organization reached the $17.75 billion cap for its government-guaranteed 7(a) loans last Thursday. Backed by the SBA, these loans are made via third-party lenders on behalf of small-business owners.

"We have seen record levels of lending this year, showing us that America's small businesses are thriving and yearning to grow," Maria Contreras-Sweet, the U.S. small business administrator, wrote in a statement on Monday.

Read More SBA hits cap for flagship loan program

The SBA originally expected to hit the lending ceiling in late August, but record lending in July sped up the timeline.

July's rush marks a fivefold increase over the normal volume, according to the SBA, which has granted more than 50,000 loans through the 7(a) program this year.

Correction: The main loan guaranty program resumed Tuesday. An earlier version misstated the day.