C-Suite Wednesday – House Republican Leader Concerned about SBLC Moratorium Proposal
November 16, 2022
Delaney Sexton
Contributing Editor
C-Suite Wednesday – House Republican Leader Concerned about SBLC Moratorium Proposal
![](https://i0.wp.com/colemanreport.com/wp-content/uploads/2022/11/Luetkemeyer.jpg?resize=116%2C175&ssl=1)
“Lifting the Small Business Lending Company (SBLC) moratorium, which has been in place since the early 1980s without acknowledging their oversight and regulatory deficiencies is a major issue. Now more than ever, the SBA should be working to ensure the safety and soundness of these public-private lending programs especially in light of the economic shocks of the last few years and the economic headwinds of today, including the forty-year high levels of inflation that Main Street businesses and Americans continue to face,” says Ranking Member Blaine Luetkemeyer. “From a federal financial regulator perspective, the SBA shouldn’t be going it alone.”
Ranking Member Luetkemeyer, the presumptive Chair of the House Small Business Committee, states that the SBA “lack[s] both the infrastructure and expertise to be the only regulator overseeing lenders”. This is in response to the proposed rule published on November 7 that would not only lift the moratorium on licensing new SBLCs but also remove the requirement for a Loan Authorization in the 7(a) and 504 loan programs.
The House Committee is concerned about changes that would “overextend the SBA’s responsibilities at a time when they are devastated by fraud and underperforming on their core mission”.
Public comments for the proposed rule end in 51 days on January 6, 2023.
Source:
House Small Business Committee Republicans Press Release