Newsroom
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.
Share This
Related Resources
Add to Calendar 2024-05-06 14:00:00 2024-05-06 14:00:00 Overview of Regulation CC Join us for this webinar, Overview of Regulation CC, and you’ll delve into the intricacies of the Expedited Funds Availability Act and Regulation CC. This includes gaining invaluable insights on effectively implementing funds availability requirements, navigating the process of placing holds on deposited items and crafting comprehensive disclosures for your members. Don't miss this opportunity to enhance your understanding of regulatory compliance in the financial landscape. Key Takeaways Know the funds availability requirements Learn what must be included in disclosures Comprehend extended holds Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 18, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Overview of Regulation CC
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Add to Calendar 2024-05-03 09:00:00 2024-05-03 09:00:00 Blind Spots in the Boardroom Listen On: Key Takeaways: [04:19] For a board to change its practices first it needs to be committed to different outcomes. It takes about 30 times for a board to start to be in a new conversation before they start to get their brain rewired to embody the change [07:24] In merger conversations we lose sight of what is important for the member. We need to look at what the continuing organization will look like and what is the leadership the membership and continuing organization need and deserve. [12:39] An educated board and executive team are a sharper team. When you have sharper leaders in the organization good things come from that. [24:22] If we are not taking care of that relationship with the CEO then we are strategically hampered. With a good CEO evaluation, the board is higher performing, the CEO is more attentive to being high performing, and the relationship is high performing and more genitive. Web NAFCU digital@nafcu.org America/New_York public
Blind Spots in the Boardroom
preferred partner
DDJ Myers
Podcast
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Get daily updates.
Subscribe to NAFCU today.