CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » Senate bill would prevent SBA from becoming direct lender
Policy & Issues

Senate bill would prevent SBA from becoming direct lender

December 14, 2021
SBALogo

Sen. Tim Scott introduced a bill to prevent the Small Business Administration from becoming a direct lender Tuesday, the Protecting Access to Credit for Small Businesses Act (S. 3382). The bill would prevent the SBA from directly making loans under the 7(a) program.

“We support all efforts to prevent SBA from becoming a direct lender and thank Sen. Scott for this legislation," said CUNA President/CEO Jim Nussle. "The current public-private partnership between lenders and the SBA benefits everyone involved, helping foster important relationships between businesses and their community. Turning the SBA into a direct lender would negatively affect these relationships and disrupt the current system at a time when small businesses need access to capital more than ever.”

CUNA wrote Scott in support of the bill Tuesday, noting that SBA’s government guaranteed lending programs epitomize a successful public-private partnership.

“This public private partnership works as borrowers can obtain loans from financial institutions that they know well and that have vested interests in their borrowers’ success. Furthermore, when working with local lenders, small businesses are likely to benefit from guidance and experience from a lender with a stake in helping the borrowing business succeed,” the letter reads. “By becoming a direct lender to small businesses, the SBA is likely to harm local financial institutions’ relationships with businesses and possibly hamper these businesses from establishing important banking relationships that can only help their business survive and flourish. 

CUNA also supports a similar bill introduced in the House by Rep. Blaine Luetkemeyer (R-Mo.).

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • Mascot Madness: East winner crowned; Midwest voting opens

  • Federal Reserve announces July launch for FedNow Service

  • Bill would establish ‘appropriate compliance timeline’ for section 1071

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which West Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us