Skip to main content

NAFCU Urges Congress to Raise SBA Loan Cap

NationalMortgageProfessional.com
Jul 27, 2015
Congress/Credit: franckreporter

The National Association of Federal Credit Unions (NAFCU) is urging members of the House of Representnative leaders to act swiftly to raise the statutory cap on the Small Business Administration’s 7(a) business loan program, which hit its ceiling of $18.75 billion last Thursday. The SBA reported that due to stronger-than-anticipated demand for 7(a) loans, the program has run out of money with more than two months left in the current fiscal year.

In a letter last week to House Speaker John Boehner (R-OH) and Minority Leader Nancy Pelosi (D-CA), NAFCU Vice President of Legislative Affairs Brad Thaler asked for quick action on legislation to raise the ceiling to $23.5 billion for fiscal 2015, which has already been approved by the Senate.

“The 7(a) loan program is important to credit unions and their members,” Thaler said, noting that it “helps credit unions provide vital capital to start-up and small and underserved businesses. If no action is taken, a valuable source for small business capital will be unavailable to those still fighting to recover from the financial crisis.”

Lifting the statutory cap would not require new funds to be appropriated because the program sustains itself through fees paid for the guarantees.

In February, NAFCU and SBA formalized a national partnership to encourage more credit unions to increase their lending to member-small businesses through SBA micro-loan programs. Each SBA-guaranteed loan dollar from a credit union is excluded from the credit union’s member business loan limit, allowing the credit union to make the most of its MBL authority.

Published
Jul 27, 2015
Feds Reviewing Appraisal Standards, Qualifications

Appraisal Subcommittee said requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.

Regulation and Compliance
Oct 20, 2021
​​​​​​​FHFA OK's Desktop Appraisals, Expands Refi Criteria

The Federal Housing Finance Agency (FHFA) said Monday it will take two steps to help make home ownership more affordable and sustainable for mortgage borrowers, especially for those in underserved communities. 

Regulation and Compliance
Oct 19, 2021
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Community
Oct 08, 2021