WASHINGTON — The Office of the Comptroller of the Currency encouraged financial institutions to invest more in the Small Business Administration's 7(a) loan program saying its “time-tested” products can not only develop new business but also mitigate risk.

The agency said by reducing risk, this $17.5-billion-a-year initiative helps supply credit to small enterprises nationwide. There are more than 450 credit unions that are SBA 7(a) lenders.

The OCC has published a Community Developments Insights report that highlights how financial institutions can use the 7(a) program to develop new business, mitigate risk, and for banks, to help meet their Community Reinvestment Act goals. The report also discusses the potential benefits and risks posed to lenders, describes the program's regulatory requirements, and outlines how lenders can receive SBA approval to offer 7(a) loans.

“The SBA 7(a) loan program offers time-tested products that help small businesses secure the necessary credit they need to develop and expand, while minimizing bank risk,” said Comptroller of the Currency John C. Dugan.