In a strong wave of opposition to the Small Business Administration’s (SBA) proposal to have explicit direct lending authority, House Small Business Committee and Consumer Protections and Financial institutions Subcommittee Ranking Member Rep. Blaine Luetkemeyer, R-Mo., introduced legislation that would prohibit the SBA from making direct loans under the 7(a) loan program.
Expressing support for the bill, which is cosponsored by all Committee Republicans, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to Luetkemeyer sharing the congressman’s concern that the “government does not belong in the business of making loans, and historically has been unsuccessful at lending.” The association has long advocated against the proposal, currently included in the budget reconciliation package, known as the Build Back Better Act.
“NAFCU thanks Representative Luetkemeyer for introducing necessary legislation to prohibit the SBA from originating and distributing loans to small businesses, stopping a provision included in the budget reconciliation legislation that grants the SBA explicit direct lending authority,” said NAFCU Senior Vice President of Government Affairs Greg Mesack in response to the bill’s introduction.
Mesack also mentions that among other concerns, NAFCU fears this proposal “could sever the relationships between small businesses and the community financial institutions they’ve trusted for years.
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