A SBA proposal that aims to make the application process easier for the agency’s loan programs has received support from CUNA.
Under the proposal, the SBA said it would eliminate a personal resources test from the regulations for the agency’s 7(a) and 504 loan programs and allowing SBA applicants more flexibility to use their loans to finance expenses.
“CUNA strongly supports efforts of federal agencies to eliminate unnecessary, outdated regulatory restrictions on credit unions,” CUNA Senior Assistant General Counsel for Regulatory Advocacy Luke Martone wrote this week in a comment letter.
According to Martone, there were 347 credit unions with over 8,100 SBA loans outstanding, totaling $921 million in funds, at the end of 2012.
CUNA said the SBA-guaranteed portion of a 7(a) loan is not counted against a credit union's member business lending cap, but there are approximately 500 credit unions that are currently constrained by or actively managing their caps.
To offer relief, CUNA urged the SBA to support legislation that would increase the 12.25% of assets MBL cap to 27.5%.