Letters to Rep Velazquez Regarding SBA 7(a) Guaranteed Loan Program
May 10, 2006
The Honorable Nydia Velazquez
House Small Business Committee
2241 Rayburn House Office Building
Washington, DC 20515
Dear Ranking Member Velazquez,
On behalf of the Credit Union National Association (CUNA), which represents 88 million credit union members, I would like to express our support for your legislation that will reauthorize the Small Business Administration's (SBA) 7(a) Guaranteed Loan Program.
As you know, the SBA issued a legal opinion removing restrictions on the types of credit unions that may participate as lenders in the 7a Guaranteed Loan Program in 2003. Today, all credit unions are able to participate in the loan program and are able to help ensure small business have access to affordable capital.
CUNA particularly supports efforts to increase the guaranteed portion of the loan to 85% for loans under $250,000, as well as the initiative to create a small lender program office which will assist credit union participation in this important program. CUNA also supports the goals of your legislation to restore the 7(a) LowDoc Program and make permanent the Community Express Program.
CUNA has long advocated that the greater the number of available sources of credit to small business, the more likely a small business can secure credit and contribute to the nation's economic recovery. Again, we greatly support and appreciate your efforts to ensure the continuation of the SBA's 7(a) Guaranteed Loan Program to preserve the viability of credit union borrowers and all small business owners.
Daniel A. Mica
President & CEO
Credit Union National Association