[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6463699,"mediaKeyId","5785145-6f022518cff8b9a4ae5b76a34428d916","parentId",5785145,"title","Committee questions SBA on disaster loan staffing cuts and fund depletion risk","audioSeconds",1107,"startMs",3228000,"endMs",4335000,"viewUrl","/Search/View?dp=1&key=5785145-6f022518cff8b9a4ae5b76a34428d916&start=3228&end=4335","thumbnailUrl","https://assets.pipeline.soar.com/5785145-6f022518cff8b9a4ae5b76a34428d916/thumbnail_3228000.jpg","articleUrl","/articles/6463699/Committee-questions-SBA-on-disaster-loan-staffing-cuts-and-fund-depletion-risk","mediaUrl","https://secure.pipeline.soar.com/6463699-c4763ccd248fc72d5eb452a9fe0751d9/orig.mp4?Expires=1770936838&Signature=OkctVZgAy0EX4nI3Jc0hVaxZeTolr8mapitE9hRqUWQwa~PflqYM3O6eDr1lc35noPXLWiNntJf3kBT2OWnjcLAaeQ9jHF~uHVp5odpYJF-2Spyf~npMKUxZ1OXXoZP5dB-~K3C1zKWa8PPdoBXHA0bwI~C6p1hrwTVissEmYLCyVF96kX-ISJv7rqUt-hYOYSa6xsEZ-Js6zIfHF4Q-chO04m~C2a19RTZ-bY5CVrXkxJhvhg0rESjcJRfDY-t7Y-wehpdn9dQYvTJee-jiQe~08m2xadIg2fWTanJ5KHZJWsZf7yFLqf~SREvRqt5cjpxEfHtvmO8lFTME~8AHCQ__&Key-Pair-Id=KUT5TJCACFTXG","author","U.S. House Committee on Small Business","date","2025-09-17T04:19:09Z","article","Several representatives raised alarms about staffing reductions at the SBA disaster processing center and a committee‑cited report showing a disaster loan account balance and a projected depletion date.

Representative McGarvey and others told the committee that the Office of Capital Access shed 196 positions between February and June and asked whether those roles were transferred to other SBA disaster offices or eliminated. McGarvey quoted a July 2025 SBA disaster loan report that the committee had reviewed, which listed a disaster loan account balance of $2,750,000,000 and an anticipated depletion date of Oct. 11.

Thomas Kimsey said the agency \"rightsized\" the workforce to pre‑COVID levels, described the move as a streamlining effort and said the SBA remains confident in its ability to deliver disaster loans. \"We're confident in our disaster loan program,\" Kimsey said, and added that the agency has experience deploying billions for recent wildfires and other catastrophes.

Why it matters: Disaster loans are a principal federal tool for small businesses to recover after storms, floods and wildfires. Members said cuts to processing staff during a period with rising natural disasters could slow disbursements and leave communities waiting for capital.

Kimsey told members he would work with members' offices and provide additional information. Members asked for data showing where positions moved, how the SBA plans to staff regional processing centers, and contingency plans if appropriated funds lapse.

Ending: The SBA committed to follow up with members' offices on staffing changes and to provide additional documentation about the disaster loan account and contingency plans for continued disaster response.","mediaType","Video","parentTitle","Pathway to Capital: The Role of SBA Lending in Supporting Main Street America","oneSentenceSummary","Committee members pressed the SBA's Office of Capital Access about elimination of disaster processing staff and an agency report projecting a disaster loan account depletion date of Oct. 11; the SBA official said the agency had \"rightsized\" operations and expressed confidence in disaster response capacity while offering to follow up with offices.","taxTitle","Small Business: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1829,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463704,"Members raise concerns that new SBA citizenship checks are blocking lawful small business borrowers",752,4998000,5750000,"/Search/View?dp=1&key=5785145-6f022518cff8b9a4ae5b76a34428d916&start=4998&end=5750","https://assets.pipeline.soar.com/5785145-6f022518cff8b9a4ae5b76a34428d916/thumbnail_4998000.jpg","/articles/6463704/Members-raise-concerns-that-new-SBA-citizenship-checks-are-blocking-lawful-small-business-borrowers","https://secure.pipeline.soar.com/6463704-8b7ebbea6f8a4584d8ff79cbe1acff17/orig.mp4?Expires=1770936838&Signature=NU6sbPUkojLTBKyri1XH~M6Dw1m8kQycFrSEsQeUtPbHqdj4vgtZuvZ-9WGvSBApddPa44s5cnElfrcVe5DPNVuvIUHfWLn3txr3rTtT1euvA567VZjpqVT-xzMrF7FLnKKASAxmDClJ3RTNRuYfIMpzDH6OnUFn~8P4NMesZEAmKq6Qap0YXfzVOYiVsnCVsVDH5meYP3WBx~JyJylHH88Ob7hY-dVFcMXDgjqqtS4jOdstJA9nIn~etsyic~WNdKVzxhhyX120R7rX~YYhHOVlBSVbtnDno-sIOlcaX2ux1MYn~jM1DiE7funSL3D43R8JfXa2lVAq1TpHBrVjUQ__&Key-Pair-Id=KUT5TJCACFTXG","Multiple members told the House Committee on Small Business that changes to SBA citizenship verification and ownership checks have caused lenders to delay or decline previously approved loans in cases involving lawful noncitizen owners or spouses.

Representative Tran and others described instances in which community lenders were unable to close loans for borrowers who include lawful, work‑authorized noncitizens or U.S. citizens married to noncitizens. \"Turning away businesses or constraining small business growth because a non‑U.S. citizen owns a minority share in the company is just not right,\" Representative Cisneros said.

Thomas Kimsey replied that the SBA has implemented 100% ownership verification and that \"verifying citizenship is very important\" to prevent fraud and to know clearly who owns guaranteed loans. He said the Office of Capital Access has communicated with lending partners about the change and that the agency was receiving feedback.

Why it matters: Committee members warned that the policy, as implemented, could reduce access to credit in immigrant‑heavy and diverse districts and asked the SBA to provide guidance to lenders so approved loans do not get rejected at closing.

Kimsey said the SBA is following the eligibility language in its SOP and that the agency's guidance is found in SOP 50 10 8. Several members asked for expedited implementation guidance and appeals or exceptions where appropriate; Kimsey offered to work with members' offices and lenders to address operational issues.

Ending: Members requested lender‑by‑lender examples and data showing how many applications or closings were affected by the citizenship verification change, and they asked the SBA to provide clear written guidance to lenders to avoid unintended denials.","Several members told the committee that a recent SBA verification policy is preventing lawful noncitizens or businesses with minority noncitizen owners from receiving guaranteed loans; the SBA said it is verifying ownership to prevent fraud and offered to work with lenders on implementation details.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463708,"Lawmakers and SBA official debate raising manufacturing loan limits to $10 million",3425,2157000,5582000,"/Search/View?dp=1&key=5785145-6f022518cff8b9a4ae5b76a34428d916&start=2157&end=5582","https://assets.pipeline.soar.com/5785145-6f022518cff8b9a4ae5b76a34428d916/thumbnail_2157000.jpg","/articles/6463708/Lawmakers-and-SBA-official-debate-raising-manufacturing-loan-limits-to-10-million","https://secure.pipeline.soar.com/6463708-d42ca749d243cc18a46dd3f7080fc31d/orig.mp4?Expires=1770936838&Signature=PlbH6iyKgstgLJqNmSg7ietI8vVhRzS5pYLhWbNTrxoyH-~FQZBcBrMIFmpqPsL9~Uvt2HGmTjyJXXzLcQ-SGrd0myv2VuZPEVmsi3eb1m5lPk80pm49RYmSPAjk3o3yFD5E3Oh04BOQaOfiI7gYROEnbASPFzl6HxwFqHN981iDz2QlKpCLsw0fPVDD5alsGhFpF6KZLtN-Te01FleliUCxLh37NXCta88TtG3bgRmN8E8I8yaF4dlsJIebaZwXLemRlWSJrc10Eq8tOs5XlxuvYSOdmad6afdhwABfZDKG9gAzVCRzqy8WWCmqPSyxoYy2neDZuXQA9WqLDkMoNA__&Key-Pair-Id=KUT5TJCACFTXG","Chairman Williams and other committee members highlighted the administration's push to expand financing options for small manufacturers and asked the SBA to explain the basis for a proposed $10 million loan limit for manufacturing borrowers.

Thomas Kimsey, the SBA associate administrator for the Office of Capital Access, told the committee that \"manufacturing is capital intensive\" and that lenders and manufacturers he has met \"asked to increase the limit from $5,000,000 to $10,000,000.\" He said the limit has not been updated since 2010 and that many manufacturers use equipment that can cost more than $1 million.

Why it matters: Several members argued that higher loan limits would help onshoring and expansion of small manufacturers; others cautioned that increases should be grounded in analysis of borrower demand and risk.

Kimsey said the SBA is supporting legislation—cited in the hearing as the Made in America Manufacturing Finance Act (referred to by a bill identifier during questioning)—and told members the agency has approved what he described as a significant increase in loan volume since Jan. 20, which he characterized as a 14% year‑over‑year increase in loan volume. He did not present the committee with a written analysis during the hearing and repeatedly offered to provide budget and modeling support afterward.

Members asked for details about how the $10 million level was chosen and whether the change would apply only to manufacturers or to all borrowers. Kimsey replied that staff would follow up with budget and modeling information and said lenders and manufacturers he has met with believe the increase is necessary to finance modern manufacturing equipment and projects.

Several members who identified themselves as sponsors or supporters of related bills told the committee they favor the increase; committee staff urged the agency to provide the modeling used to arrive at the proposed limit.

Ending: The committee asked the SBA to supply its analysis and modeling that led to the $10 million suggestion and to explain whether the limit should be targeted to manufacturers or applied more broadly.","Committee members and the SBA's associate administrator discussed proposals to raise SBA loan limits for manufacturers to $10 million, including the Made in America Manufacturing Finance Act referenced by the chair, and whether data supports that threshold.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463712,"House Small Business Committee presses SBA on rising defaults and underwriting changes",805,1339000,2144000,"/Search/View?dp=1&key=5785145-6f022518cff8b9a4ae5b76a34428d916&start=1339&end=2144","https://assets.pipeline.soar.com/5785145-6f022518cff8b9a4ae5b76a34428d916/thumbnail_1339000.jpg","/articles/6463712/House-Small-Business-Committee-presses-SBA-on-rising-defaults-and-underwriting-changes","https://secure.pipeline.soar.com/6463712-fc8d1a790b351cb5bd35bad0196e0eb7/orig.mp4?Expires=1770936838&Signature=X8YE58It1vkmyUcwWG~pxXSVG8IKSZsto72M1XAngEk6y464Rba33eC~XE6VcZ~eY9O8qMwncXb~t80OjGsl-w-4Upuv9VTSexHXliflDfNUj3dbC38JhJU-0dC5SRoY3Y0YkrOdNPumqLg3AVHLL8UpUMQ7xVyhuboyLluDhou8O7-8mL9Tinvs-tbpcymHiwpKGS0qZeZwqcZUcpwEsntgUFa18j0flww8Y8FyJLjUjYtwfnIRyM84YS7HHXmgCGDU5wGkOTd9NAomndmi58u4NZ-o5XfyPwHoKGri5QJP-I88Q7IQbRfOgE76lILvdLGQaYGa~o7Ocv6CvpcIPg__&Key-Pair-Id=KUT5TJCACFTXG","Chairman Williams of the House Committee on Small Business opened a Sept. hearing on the Small Business Administration's lending programs and sought answers about recent losses and policy changes that members said put taxpayer dollars at risk.

The committee heard testimony from Thomas Kimsey, associate administrator for the SBA's Office of Capital Access, who described steps the agency has taken since Jan. 20 to tighten underwriting and restore program safeguards. \"Capital is a lifeblood of America's 36,000,000 small businesses,\" Kimsey said, adding that his office \"restored pre‑Biden underwriting standards\" and \"reinstated lender fees to protect the 0 subsidy status of the program.\"

Why it matters: The 7(a) loan program is the SBA's flagship guarantee vehicle; committee members said changes under the prior administration led to higher early defaults and the program's first negative cash flow in over a decade, exposing taxpayers to long‑term risk.

Members pressed Kimsey on the scope and cause of losses. Ranking Member Velasquez said \"loans are down, defaults are up, and we still do not have a full understanding\" of access, systems, and how risk decisions affected operations. Kimsey responded that the SBA is managing a risky portfolio and pointed to a projected negative cash‑flow figure that committee staff cited during questioning.

Kimsey attributed recent reforms to a return to what he called \"time‑tested\" underwriting practices and said the agency had reinstated lender fees and added verification measures to reduce fraud. He told the committee the Office of Capital Access had suspended certain initiatives and reinstated the franchise directory to clarify eligibility for franchise lending.

Committee members pressed for specifics. Several representatives asked whether the SBA is monitoring lenders with elevated default rates, and Kimsey said the agency's risk division reviews lender portfolios and monitors partners with above‑average defaults. He also said the agency is expanding fraud checks and coordinating with other federal systems to verify identities and payments.

Clarifying details recorded to the committee record included a committee staff figure that early defaults had risen and a projected cohort negative cash flow of about $2,200,000,000 arising from lending decisions in recent years. Kimsey also cited a shorter figure of about $400,000,000 in costs passed to taxpayers in 2024 tied to prior policies; both figures were discussed during questioning but were not presented as audit findings during the hearing.

The hearing closed with members asking for follow‑up materials and for the SBA to provide more detailed lender‑by‑lender data and models supporting its claims about loan volume and loss projections. Without a formal vote, members said they would consider legislative approaches and oversight steps to codify or prevent future policy swings.

Looking ahead: Committee members requested additional written materials and indicated they will use the information in forthcoming oversight and legislative efforts.","Members of the House Committee on Small Business questioned Thomas Kimsey, the SBA associate administrator for the Office of Capital Access, about rising defaults, a negative cash flow in the 7(a) program, and recent changes to underwriting rules during a hearing that focused on restoring what members called program integrity.","actionData","errors"]

Article not found

Committee questions SBA on disaster loan staffing cuts and fund depletion risk

Members raise concerns that new SBA citizenship checks are blocking lawful small business borrowers

Lawmakers and SBA official debate raising manufacturing loan limits to $10 million

House Small Business Committee presses SBA on rising defaults and underwriting changes