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SBA Loans Provide Valuable Source of Revenue for Your CU
Wednesday, March 15, 2017 6:45 AM

Credit Union National Association President/CEO Jim Nussle wrote to the leadership of the House Small Business subcommittee Thursday encouraging Congress to improve credit unions’ ability to offer Small Business Administration (SBA) 7(a) loans, as well as other government guaranteed loans. These loans are important to credit unions because the guaranteed portions of the loan do not count against the member business lending cap.

Nussle wrote to Reps. Trent Kelly (R-Miss.) and Alma Adams (D-N.C.), chair and ranking member of the House Small Business subcommittee on investigations, oversight, and regulations.

“Unfortunately, the loans are complicated to make and the costs of these loans are more expensive than conventional loans for both the lender and borrower,” Nussle wrote. “Specialized staffing is also necessary for credit unions to participate in SBA lending. We encourage the SBA to simplify and clarify the language of its regulations, eliminate inconsistencies and conflicts that make rules more complex and confusing, allow electronic submission of standardized forms, and incorporate industry consensus standards into regulations as appropriate. These changes will allow credit unions to tap their considerable potential for increased SBA lending."