NAFCU advocacy working to ensure SBA does not become a direct lender to small business
As part of its markup of its section of the Democratic budget reconciliation package, the Build Back Better Act, the House Small Business Committee late last week approved legislation that included a proposal to grant the Small Business Administration (SBA) new direct-lending abilities. Under the provisions in the bill, the SBA could make 7(a) loans of $150,000 or less directly to borrowers or “through partnerships with third parties”.
House Small Business Committee Chairwoman Nydia Velázquez (D-NY) and Senate Small Business Committee Chairman Ben Cardin (D-MD) have indicated that the intent of this proposal is to expand access to smaller dollar credit for small businesses, some of whom were missed in the initial phase of the paycheck protection program (PPP).
The “Build Back Better” package, still undergoing reconciliation process in Congress, would provide the SBA with nearly $4.5 billion to create this new program.
While the legislation leaves a lot of the details of the new program to SBA, the package includes provisions would allow SBA to originate and disburse direct loans under this program, should it choose to, or use financial institutions to offer the loans and allow them to collect fees and cover costs for helping distribute and offer the loans.
“I want the SBA to create new channels to offer direct lending, that’s what is being considered in Congress right now,” said SBA Administrator Isabella Casillas Guzman this week at NAFCU’s Congressional Caucus.
NAFCU expressed concerns about the provisions that would allow the SBA to offer loans directly to the market in competition to credit unions.
“While we do not believe the SBA should be making loans directly, we stand ready to work with Chairwoman Velázquez and Chairman Cardin to make it clear that the SBA should continue to partner with credit unions and other community financial institutions. We look forward to helping them achieve their goal of getting additional credit to small businesses,” stated NAFCU Director of Regulatory Affairs Ann Kossachev.
Kossachev did note that “We strongly support efforts to ensure the nation’s Main Street small businesses have access to the credit they need to finance their operations,” and NAFCU continues to believe that credit unions are the best option for that.
NAFCU’s advocacy team is working with SBA and Congress to ensure that SBA continues its partnerships with community financial institutions, including credit unions, but does not become a direct lender itself. Stay updated on the latest information regarding SBA direct lending here.
Add to Calendar 2021-10-21 14:00:00 2021-10-21 14:00:00 FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet If you have ever wanted to know what’s new in the Federal Financial Institutions Examination Council (FFIEC) IT Examination Handbook, this is the session for you. In this webinar we will deconstruct the Architecture, Infrastructure & Operations (AIO) booklet by comparing the AIO booklet to the Operations booklet which it replaces. We dig into what’s new to AIO, including how the principles, design and content could impact your credit union during future IT exams. If you are a CISO, ISO, responsible for IT governance, or just want to stay on top of changes to IT regulatory guidelines, this session is for you. Key Takeaways Discover the key differences between the AIO booklet and the Operations booklet it replaces. Identify new principles in the AIO booklet as they relate to IT safety and soundness. Compare and contrast principles and concepts that overlap with the IT Security booklet. Review ideas on how to implement the AIO into your credit union’s Information Security Program. Purchase 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 October 21, 2022.Go to the Online Training Center to access the webinar after purchase » Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMS) Chief Executive Officers Chief Financial Officers Chief Information Officers Chief Technology Officers Compliance, risk, and audit titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCCOs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical 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
FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet
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