SBA makes NAFCU-sought changes to express loan interim rule

by NAFCU Newsroom

The Small Business Administration (SBA) Monday published an interim final rule – along with a request for additional comments – to incorporate express loan program requirements into other business loan program regulations. Of note, the agency heeded NAFCU recommendations related to the “personal resources test” threshold and cap on allowed lender fees.

Commenting in December 2018, NAFCU said the proposed rule would streamline processes and reduce credit unions’ regulatory burden. However, the association asked the SBA to:

  • reevaluate the threshold for personal resource injection for loans less than $350,000 “to ensure that these borrowers are not unduly burdened by injecting a significant proportion of their liquid assets into the applicant business;” and
  • reinstate fee waivers to ensure credit unions with limited resources are not forced to stop offering SBA products due to the limited cap on lender fees compared to the allowance of reasonable fees.

 

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