WASHINGTON — Nearly 120 people including representatives from a handful of credit unions have turned out at public forums held in early April to share their concerns and offer suggestions on the Small Business Administration's proposal to institute a lender risk rating system.

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. The tool will be used by the SBA to assess the risk of each lender's loan operations and portfolio and identify those lenders whose portfolio demonstrates the need for enhanced SBA monitoring or other action. Once the risk rating system is finalized, lenders will have access to their own quarterly performance data, including their most current composite risk rating, through the online lender information portal.

The SBA had originally published the proposed rule to incorporate risk-based lender oversight into the agency's regulations on Oct. 31, 2007. On Dec. 20, 2007, the comment period was extended through Feb. 29, 2008.