Removing Barriers Blog

House Passes CUNA-Supported H.R. 4743 - The Small Business 7(a) Lending Oversight Reform Act of 2018
Posted May 08, 2018 by CUNA Advocacy

The House passed CUNA-supported H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018 by a voice vote.  Prior to the vote, CUNA sent a letter to Committee leadership in support of the legislation.

Up to 85% of the amount of a loan made under the 7(a) program can be guaranteed by the government, and the guaranteed amount does not count against credit unions’ statutory member business lending cap.

CUNA strongly supports efforts to increase business lending opportunities under the SBA. The improved facilitation and transparency created by H.R. 4743 will benefit small businesses and create additional opportunities for credit unions to lend to member businesses.

Specifically, the bill would improve the Section 7(a) lending program by strengthening programs of SBA’s Office of Credit Risk Management, enhancing SBA’s lender oversight review process and clarifying the “Credit Elsewhere Test.”