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