The American Bankers Association yesterday wrote in support of H.R. 6037, legislation that would prohibit the Small Business Administration from directly making loans under the 7(a) loan program. In a letter to the House Small Business Committee ranking member Rep. Blaine Luetkemeyer (R-Mo.), the association questioned why the Build Back Better Act includes $2 billion for a Small Business Administration direct lending program, given the success of the 7(a) program.
“This new government-operated program will undermine existing SBA loan programs while potentially limiting access to capital for those smallest of the small businesses due to increased complexity,” ABA said.
The association said that smaller businesses need increased access to capital, given the ongoing economic uncertainty, but added that “the best way to do that is to provide the SBA with the necessary funds and resources to bolster the existing framework of the successful 7(a) program.”
