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"Chairmen Williams and Cardin with Ranking Members Ernst and Velázquez, Pen Letter to Small Business Administration (SBA) Administrator Guzman on the Departure

Summary

A House Committee on Small Business release dated May 17, 2023 on a letter from Chairman Roger Williams (R-TX), Ranking Member Nydia Velázquez (D-NY), Senate Committee on Small Business and Entrepreneurship Chairman Ben Cardin (D-MD) and Ranking Member Joni Ernst (R-IA) to Small Business Administrator Isabel Guzman. The letter concerns the departure of Patrick Kelley, Associate Administrator for the Office of Capital Access, and its effect on the SBA's changes to its 7(a) Loan Program. In a statement, Williams asks the agency to pause the new rules so the lending changes are implemented correctly. Quoted passages of the letter state that full lender guidance is not yet available and that a new permanent Associate Administrator should be in place before the changes take effect. The release closes with a list of related committee press releases.

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Chairmen Williams and Cardin with Ranking Members Ernst and Velázquez, Pen Letter to Small Business Administration (SBA) Administrator Guzman on the Departure of Former Associate Administrator Kelley

Departure of Former Associate Administrator Kelley

May 17, 2023

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Increase Oversight & Transparency

WASHINGTON, D.C. – Today, House Committee on Small Business Chairman Roger Williams (R-TX) issued the following statement after penning a letter with Ranking Member Nydia Velázquez (D-NY), Senate Committee on Small Business and Entrepreneurship Chairman Ben Cardin (D-MD), and Ranking Member Joni Ernst (R-IA) to Small Business Administrator Isabel Guzman regarding the unexpected departure of Associate Administrator for the Office of Capital Access, Patrick Kelley, and its impact on the SBA’s misguided changes to its 7(a) Loan Program.

“The unexpected and abrupt departure of Patrick Kelley from the SBA after testifying before the Committee on Small Business is extremely concerning,” said Chairman Williams. “Members from both sides of the aisle in both chambers of Congress brought up legitimate oversight questions about the changes to the agency’s lending programs could add unnecessary risks to the government backed loan portfolios. Each signatory of this letter has very different political ideologies; however, we came together to demonstrate to the SBA the gravity of this moment. I hope the agency will listen to Congressional leaders who conduct oversight over the SBA so they will put a pause on these rules to ensure the changes to the lending programs are implemented correctly rather than quickly.”

Read the full letter here.

Read key excerpts of the letter:

“The unexpected departure on Friday of the Associate Administrator for the Office of Capital Access, Patrick Kelley, leaves a void in leadership at a time when such leadership will be key in overseeing the orderly implementation of the new lending rules.

“Over the last few weeks, the former Associate Administrator testified before both House and Senate Committees, where legitimate bipartisan concerns were expressed regarding the effects that these new rules could have on the integrity of SBA’s loan programs. Furthermore, some guidance on how lenders implement these rule changes have only just come out and the full guidance is still not available. Without a permanent Associate Administrator leading the Office of Capital Access, it makes it more challenging for the stakeholders to get timely responses to implementation inquiries and for Congress to conduct necessary oversight of these significant programmatic changes.

“As small businesses and lenders begin to work through these new requirements, it is key to have this position filled with a qualified candidate equipped to handle any issues as they inevitably arise. As a result, we believe that it is best for a new permanent Associate Administrator for the Office of Capital Access to be in place prior to these changes going into effect.”

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