The Financial Technology Association (FTA) expressed deep concern in a letter to Senator Cardin and Senator Ernst regarding the Community Advantage Loan Program Act of 2023, which would amend recent SBA regulations regarding the SBA 7(a) lending program.
The letter states, “We share your objective to protect the integrity of the program and believe that necessary guardrails should be in place for all SBA programs and lenders. However, this bill limits competition in the market by reinstating the 40+ year moratorium on licensing more SBLCs, imposes “stress testing”, a costly and unnecessary regulatory requirement on only SBLCs while exempting the other 2,200 lenders in the program, and imposes a restriction on only three new SBLC licensees that limits the speed and efficiency in which they can process loans while also exempting the other 2,200 lenders in the program.”
In addition to FTA, this letter was signed by the Electronic Transactions Association, the Innovative Lending Platform Association, and the Small Business Finance Association.
Read the full letter from the four trade associations here.