WASHINGTON—The Protecting Access to Credit for Small Businesses Act, which would prevent the Small Business Administration (SBA) from making direct loans through the 7(a) program, has received support from America’s Credit Unions.
The legislation was introduced by Sen. Tim Scott (R-SC).
In a letter to the senator, America’s Credit Unions President/CEO Jim Nussle said the (7)a program “epitomizes a successful public-private partnership, and it’s one that leverages private sector expertise.”
He argued direct lending by the SBA would drive up the cost of the 7(a) and harm financial institutions’ relationships with local small businesses.
‘The Best Way to Partner’
“As such, we strongly support your legislation that would prohibit the SBA from directly making loans under the 7(a) loan program,” Nussle wrote. “Establishing and retaining a relationship with a credit union is the best way for a small business entrepreneur to partner with a provider of essential financial services.”
As the trade group noted, the government-guaranteed portion of loans made through the 7(a) program do not count against the member business lending cap of 12.25% of assets.
Now With Free Shipping! The CUToday.info Daily News Email Keeps Getting Better!
The biggest, best and freshest news reporting in credit unions remains free, and now has an added bonus---free shipping to your email address! That’s right. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?