Under a new bill, a separate SBA loan approval and repurchaseprogram would be established for credit unions.
|Introduced in early March, the Credit Union Small BusinessLending Act (H.R. 4191), would simplify the SBA application process for credit unions and boostcoordination between the agency and the NCUA.
|As proposed, the legislation would also guarantee 85% of loansthat credit unions provide to members that reside in designatedunderserved areas. The loans would not exceed $250,000. Theguaranteed portion of SBA loans does not count toward the credit union memberbusiness lending cap.
|Representatives from CUNA met with the SBA this week to discuss the agency's loan programs creditunions are eligible to participate in, and how both entities canbest ensure that credit unions are aware of those options.
|According to the SBA, it backed $30.5 billion in loans tostart-ups and small businesses in fiscal year 2011.
|The Credit Union Small Business Lending Act was introduced byReps. Kurt Schrader (D-Ore.) and Steve Chabot (R-Ohio).
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