The Senate is expected to consider the nomination of Jovita Carranza to the administrator of the Small Business Administration (SBA) this week. Carranza currently serves as U.S. Treasurer, and was deputy administrator at the SBA from 2006 to 2009.
The SBA administers two loan programs of interest to credit unions. Loans made through the 7(a) program can be guaranteed by the government for up to 85% of the loan amount, with the government-guaranteed portion of the loan not counting against a credit union’s member business lending cap.
The 7(a) program has been authorized for up to $30 billion for fiscal year 2020.
Loans made through the SBA’s 504 program can be used for long-term, fixed-rate financing on major fixed assets, such as equipment and real estate. The 504 program has been authorized for up to $7.5 billion for fiscal year 2020.