The Consumer Bankers Association (CBA) applauded the passage of a bill to increase the Small Business Administration’s (SBA) 7(a) loan program’s maximum lending authority during periods of high demand.
The bill, called the Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743), was signed into law last week by President Donald Trump.
“CBA members are dedicated to assisting small business owners across the country and, of the 100 most active SBA 7(a) lenders, make the majority of these important loans,” CBA President and CEO Richard Hunt said. “This new law ensures banks can continue providing businesses on Main Street the resources necessary to grow local economies and create jobs.”
The law will also improve the Office of Credit Risk Management (OCRM) lender review process, provide clarity to the SBA’s Credit Elsewhere Test, allow lenders to appeal enforcement actions to the SBA directly, and establish a Lender Oversight Committee within the SBA to oversee the program.
“We would like to thank President Trump, Senate Small Business Chairman Sen. Jim Risch (R-ID), Sen. Jeanne Shaheen (D-NH) and House Committee on Small Business Chairman Rep. Steve Chabot (R-OH) and Ranking Member Rep. Nydia Velázquez (D-NY) for their efforts championing this important measure for America’s small businesses,” Hunt said.