House Passes ABA-Backed SBA 7(a) Reform Bill

By a voice vote, the House today passed 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. The American Bankers Association applauded the vote, noting that the bill would help ensure the strength of the program into the future.

“The SBA programs are an important part of business lending for many banks,” ABA said in a letter to lawmakers yesterday urging them to pass the bill. “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.”