Higher Loan Cap for the SBA 7(a) Loan Guaranty Program
January 31, 2003
The Honorable Olympia Snowe, Chairwoman
Committee on Small Business and Entrepreneurship
United States Senate
428A Russell Senate Office Building
Washington, D.C. 20510
Dear Chairwoman Snowe:
On behalf of the nation's 82 million credit union members and the nearly 10,000 credit unions in the Credit Union National Association, I commend your efforts to restore a higher loan cap for the SBA 7(a) Loan Guaranty Program, in the Fiscal Year 2003 Omnibus Appropriations bill.
As you may know, credit unions have limited experience in SBA lending programs. CUNA has been working with the SBA to expand credit union participation in SBA's 7 (a) Loan Guaranty Program, and we are extremely grateful to the agency for its efforts in this regard.
Small businesses and entrepreneurs represent a huge underserved market for credit unions. Small businesses remain the heart of our nation's economy and job creation is essential to maintaining its health. CUNA urges you to support the SBA's efforts to expand the pool of credit unions eligible to make this critical assistance more widely available to small business owners.
Once again, let me express CUNA's support for your efforts to pass S.141 to boost SBA 7(a) Loan Guaranty Program lending authority from $4.8 billion to $8.2 billion for Fiscal Year 2003, while significantly reducing the 7 (a) subsidy rate. I will pledge our support to the House leadership, in hopes that they approve this measure swiftly.
Thank you for your dedication to small businesses and for your anticipated support in our efforts to work with the SBA.
Daniel A. Mica
President and CEO