Senators Object to Bill That Would Give SBA $4.5 Billion to Run Loan Program

Thirteen senators sent a letter to Democrat leadership voicing their concerns about a provision in the proposed $3.5 trillion budget reconciliation package that would give billions of dollars to the Small Business Administration (SBA) to provide direct loans. Sens. John Kennedy (R-La.) and Bill Cassidy (R-La.) who led the effort, said the proposal is “inefficient, costly and unequitable,” in the letter (pdf) submitted to U.S. House and Senate leadership and chairs of both chambers’ small business committees. The $3.5 trillion reconciliation budget provision, called Funding for Credit Enhancement and Small Dollar Loan Funding, would approve close to $4.5 billion for the SBA to run a 10-year program in which it would issue direct 7(a) loans. The program provides up to $5 million for borrowers to use for real estate, short and long-term working capital, refinancing of current business debt, and “furniture, fixtures, and supplies.” Kennedy and Cassidy say that the loans would …

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