Ernst Commends SBA Restoring Responsible Management of 7(a) Lending Program

WASHINGTON – U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) released the following statement in response to the Small Business Administration (SBA) announcing it is restoring lender fees to the 7(a) lending program.

Ernst discussed undoing the damage of the Biden administration and fixing the financial integrity of the 7(a) loan program with Administrator Kelly Loeffler in her confirmation hearing.

“I am relieved to see the SBA follow my recommendations to restore the financial foundation of the 7(a) program,” said Chair Ernst. “The Biden administration’s reckless reforms led to rising default rates and declining revenues that threatened to force taxpayers to foot the bill. Administrator Loeffler’s return to responsible management of the program restores its fiscal integrity and ensures it will continue to operate without subsidies.”

Background:

During a hearing last month, Ernst detailed how the Biden administration’s loosening of rules and reckless expansion of the program increased the risk for American taxpayers. She went on to describe how the Trump SBA could fix the 7(a) program, including restoring lender fees.

In a letter to President Trump on his first day in office, Ernst highlighted Biden’s mismanagement of the program that threatened to force taxpayers to foot the bill.

Ernst repeatedly raised concerns that the Biden administration’s rapid expansion of the 7(a) lending program was leaving taxpayers on the hook for risky lending practices by non-bank lenders.

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