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Small Business Administrator Maria Contreras-Sweet reminded the Senate Small Business and Entrepreneurship Committee Thursday that SBA has zeroed out loan fees on loans of less than $150,000 in an effort to recruit more credit unions into the system for the benefit of small businesses.

Contreras-Sweet was responding to a question from Sen. Maria Cantwell, D-Wash., on what more needs to be done to increase access to capital for minority communities and small businesses. In her response, Contreras-Sweet also emphasized SBA product Community Advantage, which gives access to the 7(a) loan product to nonprofit-mission-based lenders that have an "obligation to focus on underserved communities."

Thursday's hearing focused on ensuring the SBA can conduct effective oversight over its loan guarantee program and that small businesses continue to have access to capital. The committee was supportive of the SBA and its 7(a) loan program.

Contreras-Sweet spoke favorably of a bill recently introduced by committee Chairman David Vitter, R-La., and Ranking Member Jeanne Shaheen, D-N.H., to strengthen oversight of the 7(a) loan program and ensure it can keep supporting entrepreneurs as they start and grow their businesses. The bill would give the SBA administrator the tools needed to conduct effective oversight over the program, such as requiring the SBA to report to Congress on areas of concern for loan portfolios and ensuring that lenders' SBA portfolios aren't overly concentrated in a single industry.

In February 2015, NAFCU and SBA inked an agreement aimed at getting more credit unions to increase their lending to member-small businesses through SBA micro-loan programs. Each SBA-guaranteed loan dollar from a credit union is excluded from its member-business-loan limit, allowing credit unions to make the most of their MBL authority.