Letter to Representatives regarding the SBA 7(a) Loan Program in FY2005
July 7, 2004
On behalf of the Credit Union National Association (CUNA) and America's nearly 85 million credit union members, I would like to urge your support for a floor amendment sponsored by House Small Business Committee Chairman Donald Manzullo and Ranking Member Nydia Velazquez to the Commerce, Justice State the Judiciary and Related Agencies (CJS) appropriations bill to provide $79,132,000 for the Small Business Administration's (SBA) 7(a) guarantee loan program in FY2005.
The SBA's 7(a) guaranteed loan program provides America's small business owners with capital to start or expand their businesses. The Administration's proposed zero-subsidy for the 7(a) guarantee loan program for FY2005 would have a disastrous affect on our nation's small business owners and their access to capital. Without an appropriation, fees to lenders and borrowers would be significantly increased, and many credit unions and other financial institutions would be forced out of the program.
Small businesses are the backbone and engine of growth of the US economy. The vast majority of employment growth occurs at small businesses. The requested funding level for 7(a) equals the appropriation in FY2004, and will provide approximately $14 billion in financing for small business owners when combined with the current fee structure. The greater the number of available sources of credit to small business, the more likely will small businesses be able to secure credit, thus continuing to fuel our nation's economic recovery.
On behalf of CUNA and its member credit unions, I strongly urge your support to restore funding to the 7(a) loan program by supporting the Manzullo/Velazquez amendment to the CJS appropriations bill.
Daniel A. Mica
President & CEO