WASHINGTON (3/18/14)--The Credit Union National Association spoke out in support of continuing a Small Business Administration (SBA) 7(a) guaranteed loan program fee waiver into 2015, and promoted increasing the member business lending cap, in a letter to SBA Acting Administrator Marianne Markowitz.
The SBA currently waives upfront and annual fees of 7(a) small business loans of $150,000 or less, and President Barack Obama's recently released 2015 budget would continue this waiver. Without that extension, the waiver will expire in September.
"We appreciate the president's and SBA's recognition that the 7(a) fee waiver is an effective way to increase borrower participation in this important SBA loan program," CUNA President/CEO Bill Cheney wrote.
Cheney also again encouraged the SBA to review its 504 and 7(a) Loan Programs from a regulatory relief perspective.
"Credit unions have been working tirelessly to comply with a seemingly never-ending onslaught of regulatory requirements from a variety of federal regulatory agencies, and CUNA strongly supports efforts of federal agencies to eliminate unnecessary, outdated regulatory restrictions on credit unions," he said.
The CUNA CEO also strongly urged the SBA to follow the lead of the Obama administration and support congressional efforts to increase the credit union member business lending (MBL) cap. Increasing the MBL cap to 27.5% of assets, up from the current 12.25% limit, would allow credit unions to lend an additional $13 billion to small businesses and help them create over 146,000 new jobs in the first year after enactment, CUNA reminded.
Rep. Ed Royce (R-Calif.) is a main sponsor of a House MBL increase bill, and he has also introduced related legislation to would exempt loans for one- to four-unit non-occupied dwellings from the MBL cap. The bill is called the "Credit Union Residential Loan Parity Act." (See March 13 News Now).