June 14, 2016

By Bob Coleman
Editor, Hot Topic Tuesday

SBA Hot Topic Tuesday — ABA, ICBA Urge Changes to Small Business Lending Oversight Bill, SLPC Update

Last week, the Senate Small Business and Entrepreneurship Committee reported the Small Business Lending Oversight bill out of committee and sent it to the full Senate.

“Passing these three bills through the Small Business Committee takes us a major step forward to ensure small entities and entrepreneurs have access to the tools and resources they need to grow and innovate their businesses,” says Vitter. “I will continue working with my colleagues to pass these important, pro-jobs pieces of legislation through the Senate.”

In a joint letter, the ABA and ICBA urged legislators to ensure that community banks will not forced to exit the program due to an “imbalanced or overly restrictive cost and fee structure.”

This reflects the sentiments expressed in our informal survey of our readers. 162 took the poll. 87% do not support the legislation.

More importantly, 75% say additional fees should be a tax on the entire 7(a) portfolio, not restricted to secondary market sales.

Finally, 58% agree lenders with a portfolios of less than $10 or $20 million should be exempt from the fee.

Sacramento Loan Processing Center is back online!

SBA announces today, “There’s good news out of SLPC. The server is fully operational and all e504 services, including automated notifications, are back online. CDCs can expect to normal automated messages to resume shortly, if it hasn’t already. Although SLPC capacity is increasing, we ask for CDC’s continued patience for response times to normalize. CDCs can continue to send urgent requests to Sacramento504@sba.gov.”