ARLINGTON, Va.–NAFCU has sent a pair of letter to Congress in opposition to two proposals included in the House’s Budget Resolution package, the Build Back Better Act: a provision related to IRS reporting requirements and a provision that would give the Small Business Administrations’ (SBA) authority to make direct loans.
In the first letter sent to the House Ways and Means Committee and Senate Finance Committee, NAFCU Vice President of Legislative Affairs Brad Thaler called on committee members to remove any language enacting the provision from the Build Back Better Act.
According to Thaler, although efforts to raise the proposed threshold from $600 to $10,000 have been discussed, the changes "do not address the problems with this provision."
Opposition to SBA Direct Lending
In a second letter sent by Thaler to both the House and Senate Small Business Committee to advocate against SBA’s proposal to become a direct lender, the association's main concern seeks to highlight how the provision would not require the SBA to work with lenders as they do with other 7(a) loan products, and would inherently allow them to make loans on their own.
"The SBA has a very mixed record with previous direct lending authority, including higher rates of fraud and defaults, and should not be granted new authority in this area," wrote Thaler.