NAFCU urges lawmakers to streamline SBA’s 7(a), 504 programs

NAFCU_logo_editedThe National Association of Federal Credit Unions urged the House Small Business Committee to address portions of the Small Business Administration’s 7(a) and 504 programs that the group maintains make it more difficult for credit unions to participate.

In a letter submitted in preparation for a hearing on the SBA, NAFCU President and CEO Fred Becker urged House committee members to encourage the SBA to fix the “overly restrictive and complex provisions” of the programs, adding that some provisions make it difficult for credit unions to participate, despite the SBA’s streamlining of its loan processing system.

“In addition to the cost of administering an SBA lending program and the rigidity of some of the rules, many potential credit union SBA lenders are discouraged from engaging in SBA lending because of the lack of certainty relative to SBA guidance,” Becker said.

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