Newsroom

March 13, 2018

NAFCU reiterates support for SBA 7(a) program improvement bill ahead of mark-up

The House Small Business Committee today will mark-up legislation to improve the Small Business Administration's (SBA) 7(a) loan program. A NAFCU witness testified in support of the bill to the committee during a January hearing.

The mark-up will begin at 11 a.m. Eastern and will review six bills in total, including the NAFCU-supported Small Business 7(a) Lending Oversight Reform Act (H.R. 4743).

NAFCU witness Sonya McDonald, executive vice president and chief lending officer at Randolph-Brooks Federal Credit Union (Live Oak, Texas), in January described credit unions' dedication to the nation's small businesses. She also noted that credit unions actively participate in the SBA's 7(a) loan program, which helps credit unions mitigate loan risk and maximize small-business lending within their statutory member business loan (MBL) cap.

McDonald said H.R. 4743 was a good start to improving the program because it would codify the "credit-elsewhere" test, and also outlined the association's recommendations for the bill.

Ahead of today's mark-up, NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter reiterating NAFCU's support for H.R. 4743 and the 7(a) loan program as it is critical to credit unions' ability to provide loans to small businesses and entrepreneurs in their communities.

Other ways NAFCU has been engaged on this issue:

  • In March of last year, a NAFCU witness testified before a House Small Business Committee on credit unions' participation in the SBA's 7(a) loan program and the value credit unions provide to the nation's small businesses.
  • At the association's 2017 Congressional Caucus in September, NAFCU President and CEO Dan Berger signed an agreement with SBA Administrator Linda McMahon intended to increase the number of credit unions offering SBA 7(a), 504 and Community Advantage loans to business members.