CUNA Regulatory Comment Call
May 27, 2009
SBA Interim Final Rule Temporarily Increases the Size of Businesses Eligible for 7(a) Loan Program
- The United States Small Business Administration (SBA) has issued an interim final rule that temporarily changes the size criteria of businesses that will be eligible for the SBA's 7(a) Business Loan Program. In addition to the current threshold, the rule includes an alternative small business size standard that is the same standard that applies to the SBA's Certified Development Company (CDC) Program.
- Under the rule, a small business will now be eligible for the 7(a) program if it has a tangible net worth of no more than $8.5 million and average net income after Federal income taxes for the preceding two fiscal years that is no more than $3 million. It is estimated that an additional 70,000 small businesses will be eligible for the 7(a) loan program under this alternative standard.
- This alternative standard will apply only until September 30, 2010.
- This rule is one of several actions with regard to SBA loans that are intended to help small businesses during the current economic crisis. Other actions include increasing the guarantee on 7(a) loans to 90%, as well as reducing or eliminating the fees.
- The interim final rule was effective as of May 5, 2009. The SBA is requesting comments on the rule, which will be due by August 3, 2009
Please submit your comments to CUNA by July 22, 2009. Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at email@example.com and to Senior Assistant General Counsel Jeff Bloch at firstname.lastname@example.org; or mail them to Mary or Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, 6th Floor, Washington, DC 20004. You may also contact us if you would like a copy of the interim final rule or you may access it on the Internet here.
QUESTIONS TO CONSIDER REGARDING THE SBA INTERIM FINAL RULE ON THE 7(a) LOAN PROGRAM
- Do you support this change to the size requirement for businesses participating in the 7(a) Loan Program? Should it be extended beyond September 30, 2010 or made permanent?
- Other comments?
Eric Richard General Counsel (202) 508-6742 email@example.com |
Mary Mitchell Dunn SVP & Deputy General Counsel (202) 508-6736 firstname.lastname@example.org
Jeffrey Bloch Assistant General Counsel (202) 508-6732 email@example.com
Luke Martone Senior Regulatory Counsel (202) 508-6743 firstname.lastname@example.org