SBA Exception Proposed

Register now

ARLINGTON, Va. - (08/31/04) -- NAFCU is asking that NCUA provide anexception to its ‘experience requirement’ for lendersthat have been approved by the U.S. Small Business Administrationto make SBA-backed loans, since the SBA is providing a guarantee onthe loans. NAFCU is also pressing the agency to consider utilizingthe net member business loan balance for purposes of calculatingthe net worth, or minimum capital, requirement and permit creditunions to exclude MBLs from the calculation once the loan balancehas been paid below the $50,000 threshold.

For reprint and licensing requests for this article, click here.