SBA Process Too ‘Cumbersome’ CUs Tell Congress

WASHINGTON–Credit unions told the House Small Business Committee that the process for becoming a qualified Small Business Administration lender is too complex, during a hearing before the panel yesterday. Jeff Rodman, CEO of Actors FCU, New York City, testified on behalf of CUNA, saying his credit union has “found the process for qualifying as an SBA lender, and the requirements for underwriting and servicing individual loans, to be too cumbersome and time consuming to recoup the expense for the small size or number of loans we would make.” NAFCU wrote a letter to committee Chairwoman Nydia Velazquez and Ranking Member Steve Chabot expressing concern that “credit union members will be hardest hit due to the continuation of increased fees coupled with the Administration’s ongoing reduction in budget funding requests for 7(a) program. Their loans are often smaller than the average small business loan. The SBA’s access to capital programs will undoubtedly suffer, programs vital to credit unions will become more expensive and the result will be less accessibility and capital for small businesses and lenders.”