CBA Writes Congressional Leadership on Small Business Assistance

Nick Simpson

CBA Writes Congressional Leadership on Small Business Assistance

America’s small businesses need near-term relief to address COVID-19 challenges

 

WASHINGTON, D.C. – The Consumer Bankers Association wrote Congressional leaders in support of additional measures, particularly through Small Business Administration programs, to assist small businesses facing economic hardships resulting from COVID-19.

 

“The banking industry is well positioned to help those affected by economic hardship. Ensuring Main Street businesses have uninterrupted access to funds that will enable them to serve the communities they operate in is a primary concern of our members,” CBA President and CEO Richard Hunt wrote. “America’s small businesses need near-term relief to address the operational and payroll challenges resulting from the effects of this pandemic. The 7(a) Loan Program is a significant asset the federal government should use to expeditiously distribute capital to struggling small businesses and the broader economy. Furthermore, financial institutions are in direct communication with these small businesses and understand their specific circumstances and immediate needs.”

 

CBA’s full letter is available here and below are specific recommendations to maximize the ability for small businesses and banks to utilize SBA programs:

 

  • Waiving the 7(a) guaranty fee, or at a minimum lower the 7(a) guaranty fee by 50% on new originations.
  • Waiving the Small Business Administration (SBA) Express guaranty fee on new originations.
  • Increase the SBA Express guaranty to 75%.
  • Increase SBA Express to $500,000 limit from the current $350,000.

 

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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.