SBA proposes changes to 7(a) Express loans; NAFCU explains program reforms
The Small Business Administration (SBA) on Friday issued a proposed rule that would make changes to its 7(a) Express and 504 loans. Many credit unions use the 7(a) loan program to serve small businesses in their communities, and NAFCU has worked closely with the SBA to increase the number of credit unions that offer such loans.
The proposed rule seeks to provide clarity on requirements applicable to Express loans, extend the renewal term for lenders, require certain applicants to inject excess liquid assets into the business reducing the amount of SBA-guaranteed funds needed, and align Express loans' allowable fees with those of all other 7(a) lenders, among other things.
Comments on the proposed rule are due to the SBA Nov. 27; NAFCU will review the proposal and offer comments.
In addition, a new NAFCU Compliance Blog post published today highlights the 7(a) loan program benefits for CUs and also explains reforms made to the program by the NAFCU-backed Small Business 7(a) Lending Oversight Reform Act of 2018, which was signed into law in June.
The SBA tomorrow is offering a free webinar on its different loan programs.
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