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WASHINGTON – While CUNA is supporting a proposed lender risk rating system from the Small Business Administration, the trade group has recommended several changes that would help with credit union peer comparisons.

SBA has proposed an internal tool to assist the agency in assessing the risk of each active 7(a) lender and 504 or certified development company’s SBA loan operations and loan portfolio. The agency would assign each lender a composite rating based on certain portfolio performance factors, which may be overridden in certain cases. In a July 13 comment letter, CUNA Senior Regulatory Counsel Catherine Orr wrote SBA should be careful “there is no appearance of impropriety or favoritism” in cases where factors might be overridden.


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