House Approves SBA 7(a) Reform Bill

The House Small Business Committee by a voice vote today approved H.R. 4743, a bipartisan bill introduced by Reps. Steve Chabot (R-Ohio) and Nydia Velazquez (D-N.Y.) that would strengthen the Small Business Administration’s oversight of its loan programs and increase its maximum lending authority. ABA applauded the committee’s action, noting that the bill will help ensure the strength of the program into the future.

“The SBA programs are an important part of business lending for many banks,” the association said. “They help fill a critical gap, particularly for early-stage businesses that need access to longer-term loans. The guarantee helps reduce the risk and capital required for banks and facilitates loans that might never have been made without this important level of support. ABA has long supported this successful public-private partnership and is pleased that Congress recognizes the importance of this program.”