NAFCU Asks for SBA's Support
In its continued pitch to drum up support for an increase in the member business lending cap, NAFCU has reached out to SBA Administrator Karen Mills.
The trade group said it has been a long-time supporter of the SBA's lending programs, wrote NAFCU President/CEO Fred Becker in a Sept. 7 letter to Mills.
"As you know, small businesses employ half of all private sector employees, and they are a key to job creation and our nation's economical success. Unfortunately, as small businesses try to navigate through the tough economic landscape, the same large financial institutions that caused the difficulty economic conditions have reduced their small business lending," Becker wrote.
The need for raising the MBL cap from 12.25% to 27.5% of assets is urgent given the Commerce Department's recently lowering its second quarter estimate for U.S. gross domestic product growth from 2.4% annual rate to 1.6%, Becker said. He reminded Mills of pending legislation that would lift the cap.
"Raising the member business lending restriction would unlock another lending resource for struggling small businesses," Becker wrote.