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America’s Credit Unions has submitted a letter to the U.S. House of Representatives in support of H.R. 2987, the CEASE Act, formally known as the Capping Excessive Awarding of SBLC Entrants Act. The legislation would halt the Small Business Administration’s (SBA) discretionary authority to approve new Small Business Lending Company (SBLC) licenses without congressional approval.
In the June 4 letter, America’s Credit Unions President/CEO Jim Nussle stated, “America’s Credit Unions has long supported Congressional action to responsibly modernize the SBA’s 7(a) loan program to ensure that small businesses are able to access affordable credit from mission-driven lenders.”
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The organization raised concerns about the SBA's move to unilaterally expand the SBLC program by issuing three new licenses in 2023. “Unfortunately, the SBA has taken action to expand the SBLC license pool through administrative action without sufficient guardrails,” the letter read.
America’s Credit Unions warned that such unchecked expansion could increase risk to the 7(a) loan program and diminish the role of community-based lenders. “Without Congressional approval and necessary safeguards, this action could expose the program to increased risk and threaten the viability of mission-based lenders, including credit unions,” the organization said.
The letter urged Congress to pass the CEASE Act to restore legislative oversight of the SBLC licensing process: “We strongly support the CEASE Act, which will ensure Congress is the decision-making body with respect to expanding the number of non-federally regulated lenders with access to the SBA 7(a) loan program.”
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
