Senators continue opposition to 7(a) direct lending

A group of 15 Republican senators led by Tim Scott (S.C.) continued pushing back against ICBA-opposed proposed changes to the SBA 7(a) loan program.

Letter: In a joint letter, the lawmakers say the reconciliation package’s $4.5 billion to fund direct 7(a) lending by the SBA would be inefficient, costly, and unequitable.

More: The message follows a recent House Small Business Committee joint letter and op-ed from Ranking Member Blaine Luetkemeyer (R-Mo.) opposing the proposal.

Testimony: Testifying last week, Bank of Charles Town, W.Va., President and CEO Alice Frazier said experimenting with direct 7(a) lending—in which the agency has a poor track record—would jeopardize access to credit for small businesses.