CUNA is concerned about several recently proposed changes to the Small Business Administration’s (SBA) regulations pertaining to Express Loans and Affiliation Standards. CUNA sent a letter to the SBA Tuesday on the proposal, which seeks comments on those two issues, among others.
“While CUNA’s members are committed to supporting guidelines that help protect the integrity of the SBA’s loan programs and provide both lenders and borrowers with bright lines for compliance, we are concerned that some of the recently proposed changes are unduly burdensome and will have the unintended consequence of constraining credit unions’ ability to responsibly provide businesses with the capital and credit that they need,” the letter reads.
SBA Express Loans can be made for a maximum of $350,000, and feature a quick turnaround time, with the agency responding to applications within 36 hours. The proposed rule also addresses the SBA’s 504 economic development and 7(a) credit enhancement lending programs.
CUNA’s comment letter urges the SBA to reconsider three of its proposed changes: