SBA Reform Bill Passes Congress
As of June 5, 2018, H.R.4743 won over Congress by a unanimous vote and now heads to President Donald Trump’s desk. This bill intends to increase the Small Business Administration’s maximum lending authority by 15 percent. This is great news for small business owners as more may be able to receive government-backed loans.
This bill is designed to strengthen the oversight of the SBA loan programs. It will provide new guidelines for lender reviews and lender appeals rights, codifying the SBA Office of Credit Risk Management and the Lender Oversight Committee, and increase the transparency in the SBA office’s budget.
The SBA 7(a) program will receive protection under the new law. The bill codifies the SBA’s “Credit Elsewhere Test”, which requires lenders to authenticate and document why a given applicant cannot be served by conventional credit.
The bill has bipartisan support and is expected to be signed and supported by the President.