Newsroom
NAFCU-supported legislation to prohibit SBA direct lending introduced in the Senate
Sen. Tim Scott, R-S.C., Tuesday led 19 other Republican Senators in introducing legislation to block the provision granting the Small Business Administration (SBA) explicit direct lending authority currently included in the fiscal year 2022 budget reconciliation package, the Build Back Better Act (BBBA).
“NAFCU applauds Senator Tim Scott for introducing the Protecting Access to Credit for Small Businesses Act, a critical piece of legislation prohibiting the SBA from having the explicit direct lending authority to originate and distribute loans to small businesses," said NAFCU Senior Vice President of Government Affairs Greg Mesack. "Senator Scott’s bill protects the relationships between small businesses and their trusted community financial institutions, including credit unions.
"We wholeheartedly support the need to give small businesses access to capital, and we believe other, more sustainable, ways to address this challenge exist, including reinforcing the way lenders give out small-dollar loans," added Mesack. "NAFCU stands firmly in support of Senator Scott’s bill and remains committed to working with Congress to get this bill passed.”
Additionally, NAFCU Vice President of Legislative Affairs Brad Thaler thanked Scott for introducing the bill in a letter sent Tuesday.
"We share your concern that the government does not belong in the business of making loans, and historically has been unsuccessful at direct lending," noted Thaler.
View Thaler's full letter here. The association remains alert on this issue to ensure its exclusion from the BBBA and will continue to engage with the SBA and Congressional leaders to voice credit union concerns around the proposal.
Stay tuned to NAFCU Today for the latest on the legislation.