The House passed a CUNA-supported bill Tuesday that would enhance accessibility of capital available under the Small Business Administration’s 7(a) loan program. The Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743) passed by a voice vote.
Up to 85% of the amount of a loan made under the 7(a) program can be guaranteed by the government, and the guaranteed amount does not count against credit unions’ statutory member business lending cap.
“We thank members of the House for supporting this bill, which will help enhance small business lending opportunities around the country. CUNA strongly supports efforts to increase business lending opportunities under the SBA,” said CUNA President/CEO Jim Nussle. “The improved facilitation and transparency created by H.R. 4743 will benefit small businesses and create additional opportunities for credit unions to lend to member businesses.”
Specifically, the bill would improve the Section 7(a) lending program by strengthening programs of SBA’s Office of Credit Risk Management, enhancing SBA’s lender oversight review process and clarifying the “Credit Elsewhere Test”
CUNA wrote to House Small Business Committee leadership Monday supporting the bill.