Jansen urges Congress to avoid higher SBA loan fees
NAFCU witness Gail Jansen, vice president of business services and operations at Kinecta Federal Credit Union, told members of a House Small Business subcommittee "we support examining every available option to avoid the fee increases, not passing them on to the small businesses or to the small lenders" at a hearing to examine proposed SBA 7(a) loan fee increases included in the agency’s Fiscal Year 2020 budget request.
Jansen urged the SBA and Congress to work together to protect and strengthen the program and preserve a credit union's access to capital by not raising fees on small lenders and small businesses.
Jansen noted that the SBA proposed increase of 3.50 percent to the guaranty fee for loans in the range of $500,001 to $1,500,000 and 4.0 percent for loans greater than $1.5 million could have a severe impact on a credit union’s ability to fund loans for small businesses in their communities.
"In high-cost real estate markets, such as California, New York, and Washington, D.C., among others, $1.5 million is not a lot when talking about commercial real estate. Increasing the cost of these loans to both the small business and the lending institution will likely make it more difficult to get an SBA loan for commercial real estate in higher-cost markets," Jansen said.
Jansen used a credit union member as an example to stress that as an SBA Preferred Lender, members turn to Kinecta for SBA loans to gain the necessary capital to grow their businesses. Through an SBA loan, a growing residential home remodeling company refinanced its business debt and created a substantial savings that led to more jobs being created.
In response to a question from Chairman Andy Kim, D-NJ., on how borrowers are reacting to the proposed 7(a) changes, Jansen replied that "Most of the borrowers who we deal with don't understand an SBA loan, so when they come in there is an education process … they come to us and they trust that we are going to guide them in the right direction."
For more on the SBA's signature lending program and the rule-based loan origination platform SBA One, sign up for NAFCU's upcoming April 16 webinar.
Add to Calendar 2021-04-20 14:00:00 2021-04-20 14:00:00 Driving Auto Loan Success: 3 Risk Challenges Credit Unions Are Facing About the Webinar The auto industry continues to show signs of growth and opportunity even through the pandemic. But new risks have also emerged in the last year. During this webinar we'll explore the latest trends and future prospects in the auto market, the risks you need to be aware of, and how to update your strategy for growth. We'll discuss how your credit union can get in the best position possible to monitor and mitigate future risk. Key Takeaways: How risk management changed in the face of a pandemic Strategies to anticipate and prepare for risk vulnerabilities and exposure Practical tactics for credit unions to implement in 2021 Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
Add to Calendar 2021-04-20 14:00:00 2021-04-20 14:00:00 A Death in the Family: Working with Deceased Accounts Daniel Defoe was clearly correct when he noted that “nothing is certain but death and taxes.” Fortunately, credit unions don’t have many questions regarding taxes. Death, however, is another issue. Every credit union needs to make sure their operational processes are properly coordinated in the event of a member’s death. From the disposition of deposited funds to the collection of loan balances, is your credit union prepared? This webinar will review the essential elements of successfully navigating the credit union and the member’s family through the deceased member account process. Join industry veteran attorney David Reed as he takes you on a carefully coordinated tour of the process your credit union needs to master to ensure you are honoring the member’s requests, following applicable laws, and not putting the credit union at risk to pay a claim twice. Key Takeaways: Review account notations and declarations Gain a clear understanding of probate Discuss the impact on credit union deposit accounts and loans Walk through deceased account claims and remedies Register Now $295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire team access to the live webinar and on-demand recording until April 20, 2022Already registered? Go to the Online Training Center to view. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Legal Staff Compliance staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Review account notations and declarations. Gain a clear understanding of probate. Discuss the impact on credit union deposit accounts and loans. Walk through deceased account claims and remedies. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Specialized Knowledge – Technical National Association of Federally-Insured Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: CPE, NCCO, NCRM
Add to Calendar 2021-04-19 14:00:00 2021-04-19 14:00:00 CU Insurance Agency Builds Record Non-Interest Income About the Webinar Join us for this panel discussion about how Michigan First’s Insurance Agency generates non-interest income well ahead of their original 5 year plan. Hear how their agency was built to increase member share and create barriers to competitive advantage. Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
Get daily updates.
Subscribe to NAFCU today.