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"Letter to SBA Administrator Guzman Requesting a Pause on Lending Program Changes"

Summary

A letter dated May 16, 2023 to Isabella Casillas Guzman, Administrator of the U.S. Small Business Administration (SBA), asking the SBA to pause proposed changes to its lending programs until a full-time Associate Administrator overseeing them is installed. It cites the departure of the Associate Administrator for the Office of Capital Access, who had testified before House and Senate committees where bipartisan concerns were expressed about the new rules. It states that full guidance on how lenders implement the rule changes is still not available. It states that without a permanent Associate Administrator it is more challenging for stakeholders to get timely responses and for Congress to conduct oversight. The signature blocks name Joni K. Ernst, the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business.

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Full text

Congress of the linited States
Washington, BC 20515

May 16, 2023

The Honorable Isabella Casillas Guzman
Administrator

U.S. Small Business Administration

409 3" Street S.W.

Washington, D.C. 20416

Dear Administrator Guzman:

We write today to respectfully request the U.S. Small Business Administration (SBA) pause the
proposed changes to the lending programs until a full-time Associate Administrator overseeing the agency’s
lending programs is installed. 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 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.

Sincerely,
enjamin L. Cardin Joni K. Ernst
Chairman Ranking Member
Senate Committee on Small Busi Senate Committee on Small Business

and Entrepreneurship

House Committee on Small Business House Committee on Small Business

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