Credit unions’ focus on small business is a key part of Main Street success. This successful partnership between credit unions and small businesses—and ways it can continue—headlined a letter sent to newly confirmed Small Business Administration Administrator Kelly Loeffler Monday. Loeffler previously represented Georgia in the U.S. Senate and was CEO of cryptocurrency platform Bakkt.

“Credit unions are uniquely positioned to advance the SBA’s goals, particularly in areas where larger financial institutions have been less effective in meeting the needs of small businesses. As not-for-profit, member-owned financial institutions, credit unions prioritize the financial well-being of their members and their communities,” wrote America’s Credit Unions President/CEO Jim Nussle. “Profits are reinvested in the form of reduced fees, better loan rates, and enhanced services. This structure enables credit unions to serve as a vital conduit of affordable credit for small businesses, especially in rural areas and underserved urban markets.”

Nussle recommended the SBA:

• Expand credit union participation in SBA lending programs;
• Safeguarding SBA programs from risks presented by fintechs; and 
• Oppose initiatives to allow the SBA to become a direct lender and instead strengthen partnerships with community financial institutions.

Earlier this month, America’s Credit Unions witness Mike Sims testified before the House Small Business Committee on ways the

SBA can streamline its programs to further allow credit unions to serve small businesses. Sims, chief commercial lending banking officer at Georgia’s Own Credit Union, said complex program requirements are a barrier for credit unions looking to utilize SBA programs.

Read the full letter here.