A SBA proposal that aims to make the application process easierfor the agency's loan programs has received support from CUNA.
|Under the proposal, the SBA said it would eliminate a personal resources test from theregulations for the agency's 7(a) and 504 loan programs andallowing SBA applicants more flexibility to use their loans tofinance expenses.
|“CUNA strongly supports efforts of federal agencies to eliminateunnecessary, outdated regulatory restrictions on credit unions,”CUNA Senior Assistant General Counsel for Regulatory Advocacy LukeMartone wrote this week in a comment letter.
|According to Martone, there were 347 credit unions with over8,100 SBA loans outstanding, totaling $921 million in funds, at theend of 2012.
|CUNA said the SBA-guaranteed portion of a 7(a) loan is notcounted against a credit union's member business lending cap, butthere are approximately 500 credit unions that are currentlyconstrained by or actively managing their caps.
|To offer relief, CUNA urged the SBA to support legislation thatwould increase the 12.25% of assets MBL cap to 27.5%.
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