At a House Small Business Committee hearing this week, officials from the Small Business Administration (SBA) updated lawmakers on their efforts to conduct proper oversight of the SBA’s 7(a) loan program.
The 7(a) Loan Guarantee Program is designed to help people start new businesses or expand their small businesses.
“As the 7(a) Program grows in terms of loan volume, loan amount, and the Congressionally-authorized loan limit, we owe it to the taxpayers and the small businesses involved to conduct vigilant oversight. We have to make sure that American small businesses who are creditworthy but cannot obtain capital elsewhere, remain the priority,” House Small Business Committee Chairman Steve Chabot said.
William Manger, associate administrator at the Office of Capital Access at SBA, said that the 7(a) and 504 programs continue to operate at zero subsidy.
“As we look to refine the programs within the Office of Capital Access – the continued zero subsidy status of our programs will absolutely be a major priority for this administration,” Manger said.
Linda Rusche, director of the office of credit risk management at the Office of Capital Access at SBA, said SBA is focused on balancing the growing credit needs of small businesses with prudent lending, ensuring that the administration is meeting the requirements of the Small Business Act and the Small Business Investment Act.
“SBA also continues in active discussions with primary federal regulators on such topics as information sharing and vendor management. Through exchange of information we can bring improved oversight and monitoring to our activities and theirs, minimizing duplication and burden,” Rusche said.
The hearing was a follow up to the House Small Business Subcommittee hearing held in March entitled An Overview of SBA’s 7(a) Loan Program.