NAFCU outlines five ways SBA can reduce regulatory burden

WASHINGTON, DC (November 16, 2017) — National Association of Federally-Insured Credit Unions (NAFCU) Senior Regulatory Affairs Counsel Michael Emancipator provided the Small Business Administration (SBA) five ways in which the agency can reduce its regulatory burden and help credit unions better serve their business members.

Emancipator recommended that the SBA:

  • support legislation that would remove the arbitrary member business loans (MBL) cap of 12.25 percent in order to allow credit unions to serve more small business owners;
  • support the reintroduction of the Credit Union Small Business Lending Act, which would exclude any SBA loan from the MBL cap;
  • publish a best practices or case study for credit unions to emulate when establishing an SBA program and clarify compliance guidance with SBA regulations and procedures;
  • reexamine the Community Advantage pilot program, which is intended to meet the credit, management and technical assistance needs of small businesses in underserved markets, and consider allowing credit unions to participate; and
  • streamline the SBA loan approval process, which can take up to eight weeks or more, in order to decrease approval times so small business owners have access to the credit they need in a timely fashion.

The SBA’s request for information is pursuant to executive orders issued by President Donald Trump to identify regulations that should be repealed, replaced or modified.


The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to or @NAFCU on Twitter.


Molly Safreed, (NAFCU)

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