Statement of NCUA Chairman Dennis Dollar
On SBA Legal Interpretation Regarding Credit Union
Participation in SBA 7(a) Loan Program
“I am extremely pleased with today’s legal
interpretation from the Small Business Administration which will authorize
all credit unions to apply for participation in SBA’s 7(a) loan
program. After months of careful study of this important issue, the
SBA legal opinion reflects well on Administrator Hector Barreto’s
commitment to extend access to more Americans for small business entrepreneurial
capital. The SBA has given this matter proper and diligent evaluation
over the recent months as Administrator Barreto has assured me on a
number of occasions that they would. His commitment to the Bush administration’s
goals for the extension of greater access to small business lending
is impressive, and I am convinced that credit unions can be a significant
partner with SBA in furthering that access.
SBA’s legal interpretation will serve to further NCUA’s
Access Across America initiative even as it enhances the success of
its 7(a) loan program. NCUA believes that credit union participation
in the 7(a) loan program will not only expand the reach of that valuable
program, but the loan guarantees built into the 7(a) program will be
a risk management tool which will allow more credit unions to positively
serve their members and impact their communities through being a conduit
for start-up business capital.
Again, I am pleased with the SBA’s legal interpretation today
and commend Administrator Barreto for his careful evaluation and decisive
action on this matter. It has been a pleasure working with him and
the SBA staff on this issue. The results of this decision will greatly
benefit agency initiatives of both SBA and NCUA, as well as that of
the administration. NCUA stands ready to continue to work closely with
the SBA to make sure this decision works effectively for both agencies,
the credit unions who choose to participate and, most importantly,
the communities who will be positively impacted by new jobs and economic
development through expanded avenues of investment in small business.”
NCUA Chairman Dennis Dollar
The National Credit Union Administration, governed by a three-member
board appointed by the President and confirmed by the Senate, is
the independent federal agency that regulates, charters and supervises
federal credit unions. NCUA, with the backing of the full faith and
credit of the U.S. government, operates and manages the National
Credit
Union Share Insurance Fund, insuring the deposits of more than 80
million account holders in all federal credit unions and the overwhelming
majority of state-chartered credit unions.
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