CBA Writes Congressional Leaders, President on SBA Loan Programs
CBA Writes Congressional Leaders, President on SBA Loan Programs
“In order to help mitigate the economic ripple effects of the government shutdown, CBA requests that all options be explored to reopen the SBA’s 7(a) and 504 loan programs.”
WASHINGTON – The Consumer Bankers Association today wrote Congressional leaders and President Donald Trump requesting “all options be explored to reopen” the Small Business Administration’s 7(a) and 504 loan programs. The letter also urged the SBA and Congress to “ensure workarounds do not affect borrowers’ future SBA loan eligibility due to the ‘credit elsewhere’ test.”
“Small businesses were among the first to feel the effects of this shutdown due to the inability of the SBA to process and guarantee loans within its programs, including the important 7(a) and 504 programs, among others. These programs, which work with preferred lenders, remain a vital source of lending for many small businesses that would not otherwise qualify for conventional lending,” CBA President and CEO Richard Hunt wrote. “These loans also allow America’s small businesses to expand, hire new workers and grow local economies … In order to help mitigate the economic ripple effects of the government shutdown, CBA requests that all options be explored to reopen the SBA’s 7(a) and 504 loan programs.”
A full copy of the letter is available here.
As the letter notes, many banks expedited loan applications in advance of the December 22, 2018, shutdown but since then have not been able to make loans to small business owners. Banks have discussed making short-term bridge loans available to businesses, but have concerns doing so could violate the “credit elsewhere” statute, potentially making businesses ineligible for traditional SBA loans once the government reopens.
In addition to working to help small businesses, CBA member banks have been working with furloughed federal workers since the shutdown began. A list of contact information for customers wishing to learn more about assistance programs is available here.
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About the Consumer Bankers Association
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.
