SBA Signs Agreement With NAFCU to Push Loans: Congressional Caucus
The Small Business Administration and NAFCU on Wednesday signed a memorandum of understanding intended to increase the number of credit unions offering SBA loans.
The memorandum will increase the number of credit unions offering 7(a), 504, and Community Advantage SBA loans, agency Administrator Linda McMahon told those attending the NAFCU Congressional Caucus.
NAFCU officials said that credit unions will benefit from the reduced risk on small business loans and from increasing the financial resources available to their small business members.
The target goal is to have 250 credit unions offer ten or more SBA loans outstanding, NAFCU said.
NAFCU officials said they will recruit credit unions to participate in the SBA lending programs and will help facilitate direct communication between the SBA and NAFCU credit unions.
SBA Administrator Linda McMahon and NAFCU President/CEO Dan Berger signed the memorandum at the NAFCU Congressional Caucus.
Meanwhile, members of Congress warned those attending the NAFCU caucus that they should lower their expectations about whether a wholesale overhaul of the financial regulatory regime is possible.
“I’m not optimistic that we’ll see ‘Big R’ reform,” Sen. Thom Tillis (R-N.C.) told those attending the NAFCU Congressional Caucus in Washington, D.C. “I don’t think in the short-term, we’re going to see many wholesale changes to Dodd-Frank.”
The House has passed House Financial Services Chairman Jeb Hensarling’s (R-Texas) Financial CHOICE Act, which overhauled Dodd-Frank. However, the Senate is not likely to consider the bill. Senate Banking Chairman Mike Crapo (R-Id.) and ranking Democrat Sherrod Brown of Ohio are working on a bipartisan bill to make changes to Dodd-Frank.
Tillis emphasized that incremental changes are possible, though.
And Rep. Ted Budd (R-N.C.) said he expects the Senate committee to break the CHOICE Act into several pieces of legislation and send them individually to the House.
At the NAFCU meeting, Rep. Gwen Moore (D-Wis.) said she will be introducing legislation that would extend credit union field of membership limits so that credit unions can serve low-income people regardless of whether they meet other membership requirements.
Some members of Congress blasted the management of the CFPB, but appeared ready to rely on personnel changes rather than legislative changes.
For instance, Sen. Tom Cotton (R-Ark.) mentioned that Director Richard Cordray has political aspirations.
“I hear that he’s finally going to resign and run for governor,” he said.
Cordray is reportedly planning to run for governor in Ohio, although he has not announced his candidacy yet.
Sen. Tim Scott (R-S.C.) also referred to Cordray’s candidacy, saying that he would have to resign as director if he ran.
‘I don’t want him to win,” he said. “I just want him to run.”