Proposed legislation that would have boosted the most popular small business loan by 50 percent fell through the cracks in October.

Small businesses received $13.5 billion through the 7(a) program in fiscal year 2006. A proposed financing increase, contained in the House version of the SBA Reauthorization Act, proposed an increase to the Section 7(a) loan from its current $2 million cap to $3 million. The increase would help small businesses keep pace with the increasing cost of real estate, equipment and small-business acquisitions, according to LATimes.com.

Instead, the House approved an extension of SBA programs through Feb. 2, 2007. The extension gives Congress more time to complete a comprehensive review of the Small Business Administration. Without the extension through Feb. 2, certain SBA programs -- including the 7(a) program -- would have expired on Sept. 30.

One of the disputes raised regarding 7(a) loans is whether they should be subsidized – the Bush administration says yes, but others argue the fees would be too high for small business owners.

Separately, small businesses won a two-year extension of the ability to immediately deduct $100,000 of the cost of new equipment instead of depreciating it over time, up from $25,000, MSNBC.com reported. That extension is through the end of 2009.