CUNA Witness: SBA Lending "too cumbersome"

WASHINGTON (3/8/07)—Credit union witness Jeff Rodman, of Actors FCU in New York, N.Y., is expected to tell the House Small Business Committee today that the process for qualifying for Small Business Administration (SBA) 7 (a) loans is "too cumbersome."

Rodman, scheduled to testify on behalf of the Credit Union National Association (CUNA), will tell the House panel that Actors has considered the SBA guaranteed loan program "for some time" and believes it would both expand and enhance the credit unions' business service to members.

"Unfortunately, we have found the process for qualifying as an SBA lender, and the requirements for underwriting and servicing individual loans, to be too cumbersome and time consuming to recoup the expense for the small size or number of loans we would make," Rodman's testimony is expected to note. (CUNA News Now)