The U.S. House Committee on Small Business convened on February 13, 2025, to discuss the critical role of Small Business Administration (SBA) lending programs and community banks in driving economic growth. A key focus of the meeting was the need for improved access to capital for small businesses, particularly through community lenders like credit unions and nonprofit organizations.

Georgia's Own Credit Union, a leading small business lender in Georgia, highlighted its success in providing over $571 million in member business loans, including SBA 7(a) and 504 loans. Despite a dip in loan interest due to inflationary concerns in 2023 and early 2024, the credit union has seen a resurgence in applications since the recent elections, anticipating a strong lending year ahead. They emphasized the importance of SBA loans in supporting local businesses, citing their partnership with Radiant Solar, a woman-owned business that received a $5 million SBA loan to expand its operations.

However, challenges remain. Community lenders expressed frustration with the complexity of SBA program requirements, which can hinder their ability to serve small businesses effectively. They called for the SBA to streamline processes and provide targeted training to enhance operational capabilities. The need for more engaged regional SBA offices was also stressed, as these could help address day-to-day operational issues faced by lenders.

Frank Weddigrove, a franchise owner of Camp Bow Wow, shared his personal success story, crediting the SBA 7(a) loan program for enabling him to start his business. He underscored the importance of SBA programs for franchisees and small businesses, noting that many would not exist without this federal support. Weddigrove also urged Congress to maintain favorable regulatory conditions for franchises, which play a significant role in job creation and economic stability.

Heidi DeArmond, president of MoFi, a nonprofit community development financial institution, provided insight into the challenges faced by businesses that do not qualify for traditional bank financing. MoFi has successfully funded numerous small businesses through SBA microloans, demonstrating the effectiveness of these programs in fostering entrepreneurship and revitalizing local economies.

The committee's discussions underscored the vital role of SBA lending programs in supporting small businesses, particularly in underserved communities. As the economy continues to recover, the need for accessible capital remains paramount. The committee's commitment to reviewing regulatory barriers and enhancing SBA support for community lenders could pave the way for a more robust small business landscape in the coming years.