ABA Urges Support for SBA Lending Oversight Bill

ABA today urged members of the Senate Small Business and Entrepreneurship Committee to support legislation that would set forth an appropriate level of oversight of participation in the Small Business Administration’s popular 7(a) program.

In a letter supporting the Small Business Lending Oversight Act, ABA noted the significant growth in the use of the 7(a) program in recent years and said such growth can bring challenges “if strong oversight is not incorporated into the program to ensure that lenders, borrowers and SBA have strong systems in place” to ensure proper behavior and appropriate responses to violations.

The committee will hold a hearing on the issue Thursday, with SBA Administrator Maria Contreras-Sweet scheduled to testify.