Fred Becker Wrote to SBA Administrator Karen Mills Asking for her Support of H.R. 4191

By Michelle A. Samaad

In its latest push to gather support for increasing the member business lending cap, NAFCU recently called on the SBA to aid in the fight.

NAFCU President/CEO Fred Becker wrote to SBA Administrator Karen Mills asking for her support of H.R. 4191, a bill that would better facilitate credit union lending through the agency.

Introduced March 8 by Rep. Kurt Schrader (D-Ore.) and Rep. Steve Chabot (R-Ohio), the bill would establish a separate approval process for loans made in the 7(a) program to credit unions using existing SBA staff and infrastructure. The bill would also create an outreach program to educate credit unions about SBA lending and authorize the agency to simplify the 7(a) application process for credit union. 

NAFCU said H.R. 4191 would establish a program that would provide an 85% guarantee on credit union SBA loans made to members or businesses located in underserved areas and make technical clarifications to the Federal Credit Union Act to facilitate CU participation in the 504 Certified Development Companies loan program.

Becker and Mills, along with senior staff, met at SBA headquarters Feb. 8 to discuss how to improve credit union business lending, particularly through the SBA’s programs.

“We believe H.R. 4191 is an important step in the right direction toward this goal and we respectfully ask for your support for the bill,” Becker said, adding NAFCU stands ready and willing to work with the SBA to continue building credit union participation in its programs. 

Becker also urged Mills to take a vocal position in favor of raising the MBL cap from 12.25% of assets to 27.5%.

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