CUNA Empathetic to SBA Wanting Sound Requirements for GO Loan Program

WASHINGTON – CUNA understands that the timing may not be right to press SBA on providing more clarification on how credit unions can participate in the agency’s GO Loan hurricane relief program SBA launched GO Loans in early November 2005 to help get quick capital to small businesses in hurricane-stricken areas. “This many not be the best time to push them but we will continue to work with the SBA to see if there are any evolutions here,” said Mary Dunn, CUNA associate general counsel. Dunn said while credit unions have to be approved for SBA’s Express Lender program in order to issue GO Loans, for the purpose of Katrina relief, program requirements should “not be quite so onerous.” She said CUNA understands that SBA may be hesitant to back off of sound requirements. “SBA is like NCUA is some regards,” Dunn said. “They want to make sure lenders are safe and sound and they’re doing everything they need to make sure loans are handled in a proper way.” Dunn suggested maybe SBA might consider looking at those credit unions that have complied with NCUA MBL requirements as entry into the GO Loan program. Some credit unions have expressed interest in the program, she added. -