Did you have a Financing Contingency Exhibit, an Appraisal Contingency Exhibit, and (if required) a VA or FHA loan addendum?
The first - the Financing Contingency - provides you with additional rights, and is a required exhibit unless you're paying cash for the property (which you apparently are not). The Appraisal Contingency is not required, but in this market should be a no-brainer. If you're using a VA or FHA mortgage to secure the home, then the exhibits for those type of products are required in addition to the Financing Contingency Exhibit.
The Financing and Appraisal Contingencies have their own due diligence periods that may or may not be longer than the original 14 days in the Purchase and Sale Agreement.
Speak to your agent and ask for clarifcation on the delay. The Augusta Market continues at 13% below 2008 sales figures, and 2008 was down 24% on 2007 numbers - I don't know what the lender means by "business picking up" - they may be putting a higher priority on refinances vs. purchases, you need to speak to his boss. the 11th is still 10 business days away, plenty of time - and the appraisal and inital underwriting should already have been complete.
Despite the built-in seven day extension, Georgia still requires an amendment to extend the closing date.