Ernst Glad SBA Revises Disastrous Biden-Era Underwriting Standards Within 7(a) 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’s (SBA) changes to the 7(a) program’s standard operating procedure.

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

“It is reassuring to see Administrator Loeffler continue to undo the damage done by the reckless Biden-era changes to the 7(a) loan program,” said Ernst. “Eroding underwriting standards led to a wave of defaults that could have forced taxpayers to foot the bill. I am encouraged that the SBA is following my recommendations to restore responsible fiscal management to its flagship lending program and looking after tax dollars.”

Background:

During a hearing earlier this year, 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.

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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