NAFCU writes to House small biz committee to oppose SBA direct lending prior to hearing
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to House Small Business Committee Monday ahead of today’s hearing to discuss Small Business Administration (SBA) Administrator Isabella Casillas Guzman’s vision for the agency moving forward. In the letter, Thaler expressed NAFCU’s ongoing opposition to the provisions in the committee’s language from the Build Back Better Act that allow the SBA to directly offer 7(a) loan products to market, dodging current partners and community lenders – including credit unions.
Thaler reiterated NAFCU’s concerns with the language in the BBBA that would allow the SBA to originate and disburse loans to small businesses.
“NAFCU has serious concerns that this provision does not require the SBA to work with lenders as they do with other 7(a) loan products and would allow them to make loans on their own should they so choose,” wrote Thaler.
Thaler also highlighted that NAFCU and credit union members do support the concept of expanding access to small dollar business loans, highlighting credit union’s utilization of the Paycheck Protection Program (PPP) to fill the need for more access.
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