WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after President Donald Trump signed the bipartisan Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743) into law, which authorizes the Small Business Administration to increase the 7(a) loan program’s maximum lending authority during periods of high demand, among other reforms:
“CBA members are dedicated to assisting small business owners across the country and, of the 100 most active SBA 7(a) lenders, make the majority of these important loans. This new law ensures banks can continue providing businesses on Main Street the resources necessary to grow local economies and create jobs.
“We would like to thank President Trump, Senate Small Business Chairman Jim Risch (R-Idaho), Senator Jeanne Shaheen (D-N.H.) and House Committee on Small Business Chairman Steve Chabot (R-Ohio) and Ranking Member Nydia Velázquez (D-N.Y.) for their efforts championing this important measure for America’s small businesses.”
The Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743) will ensure qualified small business owners have access to needed capital through the SBA 7(a) program. Specifically, the bill will authorize the SBA Administrator to increase the 7(a) Loan Program’s maximum lending authority during periods of high demand; improve the Office of Credit Risk Management (OCRM) lender review process; provide needed clarity to the SBA’s Credit Elsewhere Test; allow lenders to appeal enforcement actions to the SBA directly for timely dispute resolutions; and establish a Lender Oversight Committee within the SBA to oversee the program and the actions of the OCRM Director. The bill was introduced by Reps. Chabot and Velázquez.