SBA funding, CU business loan fix asked of Congress

WASHINGTON (9/28/07)--Small businesses have greater access to capital through the U.S. Small Business Administration (SBA) programs, but credit union participation in such loans may wane as they are faced with the current roadblocks of increased fees and inadequate funding of the SBA's programs, a Credit Union National Association (CUNA) witness told a House panel yesterday.

The credit union lender also urged the committee to ensure adequate financing flowed to small businesses. He said Congress must address the arbitrary 12.25% of assets limit placed on credit union business loans, which he called "artificial and far too restrictive."

"Less than eight years into our commercial lending, and after only five years of SBA lending, we will soon hit the cap and have to limit future loans to businesses," he said. (CU News Now)