CBA Letter to House Committee on Small Business Ahead of 7(a) Loan Program Markup

Dear Chairman Williams and Ranking Member Velázquez: As the leading organizations representing virtually all the thousands of lenders participating in the U.S. Small Business Administration (SBA) 7(a) loan program, we write to strongly encourage you to work toward a bipartisan solution in response to issues arising from recent policy changes made to the 7(a) program by SBA, and to identify the lending industry’s priorities and concerns as you consider the best path forward. This is especially timely ahead of the scheduled September 14 markup in the House Committee on Small Business slated to consider such legislation.

We support the mission of the 7(a) program to encourage lenders to provide loans to underserved small businesses. However, we remain concerned that SBA’s decision to lift the moratorium on the number of nonFederally regulated lenders in the 7(a) program while simultaneously loosening underwriting standards may negatively impact the performance of 7(a) loans, threaten the integrity of the program, and lead to increased borrower and lender fees.

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