WASHINGTON—A group of 15 Senate Republicans has joined together to send a letter to Senate Majority Leader Chuck Schumer (D -NY), House Speaker Nancy Pelosi (D-CA), and the Senate and House Small Business Committee Chairs, Ben Cardin (D-MD) and Nydia Velasquez (D-NY) to express concerns against a proposal included in the Build Back Better Act that would grant the Small Business Administration (SBA) direct-lending abilities.
As CUToday.info has reported, both CUNA and NAFCU have objected to the proposal.
Under the provisions, the SBA could generate and distribute 7(a) loans of $150,000 or less, directly to borrowers or “through partnerships with third parties.”
The Republicans expressed their opposition to the proposal, telling Congressional leadership that "the program would be an inefficient, costly, and unequitable position to but both lender and borrowers," NAFCU reported.
‘Misplaced’ Priority
"Aiming to get more 7(a) loans in the hands of the smallest of small businesses by providing the SBA $4.5 billion to run its own lending program is misplaced," the letter states. “We encourage you to take lessons from the past year and see that the way to increase availability of these products to those that do not have access is not by simply having government play a larger role, but instead to empower financial institutions to do what they do best."