FINANCIAL TOOLBOX | ABA TESTIFIES

ABA Testifies on Small Business 7(a) Lending Bill

The SBA 7(a) Loan Program is an example of how bank lending promotes economic growth and should be vigorously supported in the future, according to testimony from the American Bankers Association before the House Small Business Committee today.

Patricia Husic, president and CEO of Centric Bank in Pennsylvania, testified on behalf of ABA. In her testimony, Husic, who also serves on ABA’s board of directors, stressed the importance of SBA programs to both banks and small businesses.

“The SBA programs are an important part of business lending for many banks,” said Husic. “They help fill a critical gap, particularly for early stage businesses that need access to longer-term loans. The guarantee helps reduce the risk and capital required for banks and facilitates loans that might never have been made without this important level of support.” 

Patricia HusicHusic applauded Chairman Chabot and Ranking Member Velazquez for their leadership in working with lawmakers to introduce H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018. Citing examples from her bank, Husic noted that SBA 7(a) loans are critical to helping small business owners finance their companies when they are unable to obtain traditional loans.

“This legislation, if enacted, would grant authority to the administrator to increase the amount for general business loans up to 115 percent of the fiscal year’s limit,” said Husic. “This is an important measure that gives lenders added certainty that 7(a) Loan Program funds will be available so that they can meet the needs of their customers. It also ensures that small businesses will not be affected by temporary shutdowns in the program, leaving them unable to meet payroll, purchase needed inventory, or secure necessary equipment and supplies to continue their operations and help grow their local economies.”

Husic also noted that the bill takes critical steps to improve the oversight of the program to prevent fraud and increase efficiency.

The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.

Click here for a copy of Husic’s full testimony.

Article provided by BCEDC Member, Terence J. McGlinchey,Vice President, Business Development Officer, Centric Bank, 2003 S. Easton Road, Suite 205, Doylestown, PA 18901, Office 267.880.4260, Mobile 267.410.1001, Fax 215.489.2705.