November 16, 2022
C-Suite Wednesday – House Republican Leader Concerned about SBLC Moratorium Proposal
“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.