City National Bank said it will pay up to $3,000 in SBA loan fees to encourage small businesses to borrow, the San Francisco Business Times reported.

The move occurs as SBA lending has dropped about 70 percent as borrowers wait to see whether Congress will extend measures designed to get banks to make more loans backed in part by the Small Business Administration.

A recent report said small businesses still aren’t hiring very many workers.

The stimulus package last year included the waiving of some feels and increased the guaranteed portion of an SBA loan to 90 percent. Proposed legislation extending the fee reductions or elimination has been delayed until Congress returns in mid-September.

“With SBA loan incentives having expired in May, small businesses remain hamstrung in their efforts to invest in and grow their businesses. And that comes at a time when small businesses -- typically a key employment driver -- have a vital role to play in our economic recovery,” said Jim Wullschleger, senior vice president and business banking manager at City National.

Standard loan fees range between 2 percent to 3.75 percent of the guaranteed portion of the loan.

City National said it’s offer applies to loan applications received by Sept. 10 for money lent under the SBA’s 7(a), 504 and SBA Express programs.

City National, a Los Angeles bank with $21 billion in assets, has an extensive Bay Area branch network.