WASHINGTON — The turnout for a series of public forums put together by the Small Business Administration on its proposed lender oversight and risk rating system has been fairly strong with nearly 120 people attending including representatives from several credit unions.
At issue is the SBA’s proposed rating system to assess an SBA Lender’s 7(a) portfolio performance and a Certified Development Company’s 504 loan portfolio performance.
Last week, SBA began a three-week series of public meetings on the proposal. Forums were held on April 1 and April 3 in Los Angeles and San Francisco, respectively. Eighty people including representatives from Lockheed CU, USC CU and California CU attended the Los Angeles meeting while 40 persons turned out for the San Francisco forum.
Some 7(a) lenders have asked for additional information on the risk rating elements, said Bryan Hooper, director of SBA’s Office of Credit Risk Management. Meanwhile, some CDCs have voiced disapproval with the SBA’s proposal to reduce the timeframe for submission of annual financial statements from 180 days to 90 days.
CUNA and NAFCU have encouraged SBA to spell out in more detail how the rating components and peer comparisons are actually factored together to obtain the composite rating.
Hooper said SBA has received more than 200 comment letters on the proposal.