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Sen. Cardin introduces long-awaited SBA Reauthorization Act
Sen. Ben Cardin, D-Md., Thursday introduced the Small Business Administration (SBA) Reauthorization Act targeted at improving and modernizing existing SBA programs as well as implementing new programs focused on underserved areas.
The reauthorization of SBA programs is typically supposed to happen every few years; however, this has not been done since 2001. Several efforts from lawmakers, including Sen. Marco Rubio, R-Fla., have reauthorized portions of the SBA, over the years. Lawmakers and outside groups have urged for the comprehensive reauthorization of the agency’s programs in order to replace outdated and ineffective policies.
Of note, Cardin’s bill will seek to modify and grant authorities to implement policies within the SBA. It will also place a special focus on the SBA’s initiatives to better support underserved communities. The bill is unlikely to move forward this year as lawmakers continue to focus on government funding and will likely be reintroduced in the next Congress.
NAFCU has been an avid supporter of SBA programs such as the 7(a) lending program and the Paycheck Protection Program (PPP), helping credit unions serve members through the PPP at the height of the COVID-19 pandemic.
The association has previously shared concerns with lawmakers over several SBA proposals, including its Small Business Lending Company (SBLC) moratorium rescission and proposed rule regarding affiliation and lending criteria for the SBA business loan programs.
NAFCU has also expressed opposition against the SBA’s direct lending proposal, which could lead to issues with fraud and defaults, and potentially dissolve existing credit union-small business lending relationship.