CUNA strongly supports the Small Business Administration’s 7(a) loan program and advocates for the highest possible federal funding level, CUNA President/CEO Jim Nussle wrote to House Small Business Committee leadership Wednesday. The letter was sent for the record of the committee’s hearing reviewing the 7(a) loan program.
SBA 7(a) loans can be guaranteed up to 85% by the government, and the government-guaranteed portion of the loans do not count against the credit union member business lending cap. At the end of 2016, there were 400 credit union SBA lenders reporting $1.6 billion in SBA loans outstanding from 8,100 individual loans.
CUNA believes the highest possible federal funding level will “keep fee costs low and to make the program accessible to credit unions.
Additionally, CUNA believes that the greater the number of available sources of credit to small business, “the more likely a small business will be able to secure credit and contribute to the nation’s economy.”
CUNA also encouraged the SBA to “simplify and clarify the language of its regulations, eliminate inconsistencies and conflicts that make rules more complex and confusing, allow electronic submission of standardized forms, and incorporate industry consensus standards into regulations as appropriate. These changes will allow credit unions to tap their considerable potential for increased SBA lending.”