Members of the House Small Business Committee are expected to propose legislation soon to overhaul an array of Small Business Administration programs, including the agency's 7(a) and 504 lending programs.
Representatives of lender trade groups were among the witnesses at a hearing of the finance and tax subcommittee Thursday, and they discussed ways to improve the SBA's loan-guarantee programs and attract more lenders. They said that struggling SBA borrowers should be able to refinance their loans with new SBA loans, and that the eligibility criteria for 7(a) loans be expanded to include financing for development projects.
Lawmakers seemed receptive to the witnesses' suggestions.
"Clearly, if we are going to meet small business' capital needs, more must be done," said the subcommittee's chairman, Rep. Kurt Schrader, D-Ore.