America’s Credit Unions advocacy team leaders met with new U.S. Small Business Administration (SBA) Associate Administrator of the Office of Capital Access Thomas Kimsey whose office administers the 7(a) and 504 loan programs, both used by credit unions.

Head of Regulatory Advocacy James Akin spoke with Kimsey to discuss opportunities for collaboration between America’s Credit Unions and the SBA as well as strategies for increasing credit union participation in the government-backed SBA lending programs.

America’s Credit Unions has been engaged with the SBA on ensuring capital access for small businesses.  New SBA Administrator Kelly Loeffler spoke to Governmental Affairs Conference attendees on Wednesday highlighting her desire to expand credit unions’ reach and day-one priorities.

“This administration wants to expand that reach, ensuring capital gets into the hands of more people working with their trusted partner, and that’s you,” she said. “Last year credit unions loaned nearly $830 million under our core 7(a) loan programs.”

In February, America’s Credit Unions President/CEO Jim Nussle wrote a letter to the Senate Small Business Committee ahead of a hearing on managing risk in the SBA. The letter described the credit unions’ perspective on measures impacting risk related to SBA’s 7(a) Loan Program. 

“One of the best ways the SBA can manage risk is expanding and improving its work with its regulated financial institution lending partners such as credit unions,” Nussle wrote as he explained the need for expanding credit union participation in SBA lending programs. “While credit unions are eager to grow their SBA loan portfolios, many report that the administrative burden makes it extremely difficult to do so. Lack of internal expertise and high costs associated with participation remain significant barriers.”

Also in February, chief commercial banking officer at Georgia’s Own Credit Union Mike Sims testified on behalf of America’s Credit Unions to the House Small Business Committee. He answered questions on the impact of regulatory burden and the credit union tax status.