"Ranking Member Ernst Demands SBA Address Concerns on Irresponsible Changes to Lending Programs"
Summary
A Senate Small Business Committee press release dated March 7, 2023 announcing a letter from Ranking Member Joni Ernst (R-Iowa) and Committee Chairman Ben Cardin (D-Md.) to the Small Business Administration (SBA). The release says the senators are asking the SBA to revisit changes to its loan underwriting and to its plan to permit an unlimited number of non-bank fintechs to participate as lenders, entities it calls responsible for PPP fraud. The letter states that the proposed rules do not reflect congressional input, that Congress has not authorized any loosening of underwriting or affiliation standards, and asks the SBA to address these concerns before publishing final rules. The two proposed rules named are the Affiliation and Lending Criteria for the SBA Business Loan Programs, 87 FR 64724, and the Small Business Lending Company (SBLC) Moratorium Rescission, 87 FR 66963.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Title: Ranking Member Ernst Demands SBA Address Concerns on Irresponsible Changes to Lending Programs Date: 2023-03-07 Ranking Member Ernst Demands SBA Address Concerns on Irresponsible Changes to Lending Programs March 7, 2023 View on Sen. Ernst's website HERE WASHINGTON – U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee, and Committee Chairman Ben Cardin (D-Md.), are demanding the Small Business Administration (SBA) work with congressional committees and go back to the drawing board on the agency’s irresponsible changes made to its loan underwriting while permitting an unlimited number of non-bank financial technology companies, or “fintechs,” the very entities responsible for issuing billions of dollars-worth of Paycheck Protection Program (PPP) fraud, to participate as lenders. In the letter, Ranking Member Ernst and Chairman Cardin write, “The proposed rules establish broad and sweeping changes that do not reflect congressional input or authorization. In particular, changes to the current underwriting standards have the potential to make the program vulnerable to predatory lending practices… “The sweeping changes contained in these two rules would substantially overhaul SBA’s lending programs by permitting new program participants and changing the current guardrails of the programs, something that comes dangerously close to authorizing through the regulatory process… “Let us be clear, Congress has not authorized any loosening of prudent underwriting or affiliation standards... “We urge diligence and restraint from the agency. SBA must strongly consider prudent guardrails that can be demonstrated to be successful, before making changes that could impact the fiscal integrity of overall SBA lending programs. We urge the SBA to work closely with congressional committees. The SBA should address these concerns before publishing final rules.” Recently, SBA proposed two rules: The Affiliation and Lending Criteria for the SBA Business Loan Programs, 87 FR 64724, and Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization, 87 FR 66963. These proposed rules would loosen key 7(a) program requirements and remove critical safeguards designed to prevent fraud and abuse. Read the full letter here. ### Permalink: https://www.sbc.senate.gov/public/index.cfm/2023/3/ranking-member-ernst-demands-sba-address-concerns-on-irresponsible-changes-to-lending-programs
File and source
- File
- 2023-03-07_ranking-member-ernst-demands-sba-address-concerns-on-irresponsible.txt
- Size
- 2,688 bytes
- SHA-256
- 38b0ed014076db4d4e6c738d89d8e30b14c1fe623f1ec3a8bff78b60f1f3098b
- Original
- www.sbc.senate.gov