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MCUA Supports Changes to SBA's 504 and 7(a) Loan Programs

Last Friday, April 26, 2013, the Missouri Credit Union Association filed a comment letter with the Small Business Administration (SBA) in support of proposed changes to the agency’s 504 and 7(a) Loan Programs. The changes proposed by the SBA are intended to “strip away regulatory restrictions that detract from the 504 Loan Program’s core job creation mission as well as the 7(a) Loan Program’s positive job creation impact on the American economy.” MCUA appreciates and supports the SBA’s initiative to review the 504 and 7(a) Programs from a regulatory relief perspective.

Specifically, MCUA supports the proposed changes to: (1) eliminate the personal resources test that is required under both loan programs, and (2) eliminate the “9-month rule” that limits 504 funding to expenses incurred within the nine months prior to applying for the loan.

 

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