Small Business Committee Reviews SBA’s 7(a) Loan Program
?Ensures Program’s Ability to Help Small Businesses & Protect Taxpayer Dollars
WASHINGTON— Officials from the Small Business Administration (SBA) told members of the House Small Business Committee today that they are working diligently to make sure small businesses can get the capital they need to grow their companies while conducting proper oversight of the 7(a) loan program, SBA’s most common loan program, to maintain a zero subsidy cost to the taxpayer.
“As the 7(a) Program grows in terms of loan volume, loan amount, and the Congressionally-authorized loan limit, we owe it to the taxpayers and the small businesses involved to conduct vigilant oversight. We have to make sure that American small businesses who are creditworthy but cannot obtain capital elsewhere, remain the priority,” said House Small Business Committee Chairman Steve Chabot.
SBA’s 7(a) Loan Program: A Detailed Review
“SBA is particularly interested in balancing the growing credit needs of America’s small businesses with prudent lending, always ensuring that we are meeting the requirements of our mission as authorized by the Small Business Act and the Small Business Investment Act,” said Linda Rusche, Director of the Office of Credit Risk Management at the Office of Capital Access at SBA.
“SBA also continues in active discussions with primary federal regulators on such topics as information sharing and vendor management. Through exchange of information we can bring improved oversight and monitoring to our activities and theirs, minimizing duplication and burden,” noted Rusche.
“It is of paramount importance to me and our agency that our 7(a) and 504 flagship programs continue to operate at zero subsidy and remain a great deal for taxpayers. As we look to refine the programs within the Office of Capital Access – the continued zero subsidy status of our programs will absolutely be a major priority for this Administration,” said William Manger, Associate Administrator at the Office of Capital Access at SBA.
This hearing was a follow up to the House Small Business Subcommittee hearing held in March: An Overview of SBA’s 7(a) Loan Program.