Bill would bar SBA 7(a) direct lending

Legislation to bar SBA direct lending under its 7(a) loan program was introduced amid an ICBA grassroots campaign opposing the policy.

Background: The legislation from House Small Business Committee Ranking Member Blaine Luetkemeyer (R-Mo.) responds to an ICBA-opposed provision of the Build Back Better reconciliation bill that would authorize the SBA to issue direct 7(a) loans.

ICBA Opposition: ICBA and other financial services groups last week urged congressional leaders to remove the provision, which ICBA has repeatedly spoken out against since it was introduced in September.

Congressional Opposition: In a separate letter last week, Luetkemeyer and House Financial Services Subcommittee on Housing Ranking Member French Hill (R-Ark.) urged the SBA to halt its direct lending efforts.

Grassroots: Community bankers can use ICBA’s Be Heard grassroots action center to urge Congress to oppose the SBA direct lending plan. Contact Congress here.