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NAFCU's Kaley Schafer restated the critical role credit unions play in supporting the nation's small businesses in a letter Monday to the Small Business Administration (SBA) regarding the agency's proposed rule to incorporate express loan program requirements into other business loan program regulations.

"Incorporating the SBA's standard operating procedures (SOPs) into the regulations streamlines the process and reduces regulatory burdens on credit unions," wrote Schafer, NAFCU's regulatory affairs counsel. "Further, the extension of renewal periods for lenders and preferred lenders is very helpful for those current and future preferred lenders."

The proposal would also reinstate a "personal resources test" for determining when an applicant must inject personal funds into the business. Schafer recommended the agency reevaluate the threshold for personal resource injection for loans less than $350,000 "to ensure that these borrowers are not unduly burdened by injecting a significant proportion of their liquid assets into the applicant business."

In addition, Schafer suggested reinstating fee waivers to ensure credit unions with limited resources are not forced to stop offering SBA products due to the limited cap on lender fees compared to the allowance of reasonable fees.

NAFCU works closely with the SBA to improve access to credit union small-dollar loans to small businesses across the nation. Read the full letter here.