On On Tuesday, the Credit Union National Association wrote letters to the House and Senate Small Business Committees stating that it is in the interest of small business entrepreneurs to partner with a financial services provider, rather than ‘to the Small Business Administration directly. The CUNA addressed its role in supporting emerging businesses and advocated for policies that would prevent the SBA from serving as a direct lender. The letters will be presented at a monitoring hearing to review the SBA on Wednesday.
CUNA said, “…we strongly support legislation – such as S. 3382 and HR 6037 – that would prohibit the SBA from making loans directly under the 7(a) loan program and oppose any effort in the FY2023 budget to fund a direct loan. program.”
With the SBA becoming a direct lender during the COVID-19 pandemic, relationships between small businesses and financial service providers could not be forged.
“…when working with local lenders, small businesses are likely to benefit from the advice and experience of a lender who has a vested interest in helping the borrowing business succeed. By becoming a direct lender to small businesses, the SBA has the potential to damage local financial institutions’ relationships with businesses and potentially prevent those businesses from establishing meaningful banking relationships that can only help them survive and thrive.
During the Small Business Committee hearing, Congressman Stauber asked SBA Administrator Guzman about how the Biden administration is helping both the middle class and small businesses fight inflation .
Guzman explained how the president is acting on energy costs, “he’s made a million barrels a day available, to try to control some of the gas costs that we know affect our small businesses… ”
Stauber responded, “…the Strategic Petroleum Reserve really should be kept for national emergencies and not for failed policies…” He further mentioned his concerns as he believes the administration is not doing enough. quickly as inflationary costs rise for small businesses.
Last modification : April 28, 2022
Larissa Brulato writes for deBanked. Connect with me on LinkedIn.
Category: Business loans