WASHINGTON — Over the past two years, 368 banks have stopped participating in the Small Business Administration's lending programs, the agency said.
During his Jan. 22 State of the SBA Speech, Administrator Steve Preston said the losses represent a 7% decline in the number of banks that have outstanding SBA loans. Most would think it's because of the agency's fees, Preston said, but banks are actually complaining about the complexity of SBA's rules, slow turnaround times, paperwork "burdens," and lack of support when banks have issues.
"There is a fundamental connection between the effectiveness of our programs and the way we deliver them," Preston said. "A related fact is that efficiency does not have to come at the cost of effectiveness. Through smarter processes, better technology, and a more coordinated, better trained organization, you can provide better service at lower cost."
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