CUNA-supported bill to strengthen SBA loan program passes in the House
FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; email@example.com
Washington, DC (May 8, 2018) – The House voted today in favor of the Small Business Administration's 7(a) loan program. The Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743) would enhance accessibility of capital for American small businesses.
CUNA wrote a letter in support of H.R. 4743, which would give credit unions the opportunity to provide additional lending to qualified entrepreneurs. Under the 7(a) program, up to 85% of the amount of a loan can be guaranteed by the government. This is particularly impactful for credit unions as the guaranteed amount does not count against their 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.”
Furthermore, H.R. 4743 improves the lending program under Section 7(a) by:
- Strengthening programs of SBA's Office of Credit Risk Management;
- Enhancing SBA's lender oversight review process; and
- Clarifying the "Credit Elsewhere Test"
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.