Backbone of the economy?

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The fund meant to help spur lending to small businesses is about to run out -- for the second time.

On Monday, the Small Business Administration established a waiting list for businesses to apply for loans anyway, in hope that the fund will be replenished soon by Congress.

The funds are meant to encourage banks to lend to small businesses by making it cheaper and less risky for them to do so. They were set up as part of the economic stimulus package passed last year, and allow the administration to guarantee loans up to 90% instead of the usual 75% to 85%. With the stimulus money, the administration was also able to waive fees of up to 3.5% that it usually charges for the loans.

Administration officials say they expect the funds to be replenished soon, but at the moment it’s all stuck in Washington, D.C., limbo.

-- Sharon Bernstein