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 2020-08-13 14:00:00 2020-08-13 14:00:00 What Internal Auditors Have Learned from the Pandemic and What They Should Do Going Forward Just a few months ago, it would have been unfathomable that we would be living in a pandemic crisis today. The pandemic has impacted nearly every organization and every person. Sometimes as quickly as daily, risks change and new risks emerge. We have experienced changes in the market economy, supply of goods and services, serving members, practices to maintain safety and the health of employees and members, and challenges of working remotely. Join us for an hour of information sharing of what internal auditors have learned from the pandemic so far and how internal auditors can continue to add value and participate in decision making in this relatively uncertain, risk emerging time. Key Takeaways Understand how to communicate with management and the supervisory committee Identify emerging risks and participate in decision making Review risk topics currently impacting credit unions Learn how to reset and redefine internal audit efforts Resurge internal audit’s role as trusted business advisor Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until August 13, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Risk Managers (NCRMs) Chief Financial Officers (CFOs) Finance staff Risk staff Education Credits 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: Understand how to communicate with management and the supervisory committee. Identify emerging risks and participate in decision making. Review risk topics currently impacting credit unions. Learn how to reset and redefine internal audit efforts. Resurge internal audit’s role as trusted business advisor. 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: Finance - Technical National Association of Federal 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 firstname.lastname@example.org America/New_York public
Credits: NCRM, CPE
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Add to Calendar 2020-08-10 14:00:00 2020-08-10 14:00:00 CDFI Certification: A Door to external resources to expand your credit union’s capacity to serve its community There currently are 312 credit unions certified as a Community Development Financial Institution (CDFI), with combined assets of almost $134 billion and serving more than 12 million predominantly low income and minority consumers across the nation. Many more credit unions are eligible as they operate in CDFI target markets and offer products and services relevant to those communities. Nearly 700 credit unions are in what we call the “CDFI zone” Are you one of them? This certification makes credit unions eligible to participate in and/or to receive financial assistance and technical assistance awards as well as to receive deposits from institutions participating in the Bank Enterprise Award Program. In addition, the certification provides access to a growing number of programs offered by other agencies, such as participation in the loan guarantee program offered by the Bureau of Indian Affairs. Certification also provides certain regulatory exemptions, such as NCUA’s MBL limit and CFPB’s Ability to Repay and QM requirements. The CDFI Fund is the single largest source of external resources for credit unions, providing since its inception, more than $370 million in technical and financial assistance grants to increase access to affordable lending options and responsible financial services for low and moderate income and financially underserved populations. Key Takeaways Discuss building blocks of community finance Identify tools available to credit union Review eligibility requirements Understand the process for achieving CDFI certification Learn how to leverage the benefits of this credential Register Now For On-Demand AccessRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until August 10, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officer (CEO) Chief Lending Officer (CLO) Business Lending Staff Lending Staff Education Credits This webinar doesn't qualify for any continuing education credits recognized by NAFCU or NASBA. 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
CDFI Certification: A Door to external resources to expand your credit union’s capacity to serve its community
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