The American Bankers Association generally supports a proposal by the Small Business Administration that would let banks sell the nonguaranteed portion of 7(a) loans if they retain a percentage of the credit.

"ABA applauds the SBA for formulating a proposal based on credit performance which is equally applied to both banks and nondepository lenders," wrote John C. Rasmus, ABA's senior federal administrative counsel, in a July 17 letter to the agency.

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