Straight Talk: A Conversation About SBA Lending with Administrator Karen Mills

Statement

Dear Friends,

One of the biggest issues faced by small businesses today is the inability to access sufficient credit and capital. As you are well aware, many small businesses lack the resources of their larger counterparts and often rely on capital financing to carry out their daily operations.

Small firms need diverse ways to access capital to start their business, invest in their company, and meet unexpected challenges. To help address this, the Small Business Administration (SBA) plays a role in meeting the credit needs of many small businesses who can't access financing through a traditional bank loan. So, considering recent reports that small business lending is down nationwide, it is more important than ever to ensure that SBA's lending programs are functioning with integrity and efficacy.

This week, the Committee discussed SBA's management of its capital access programs with Administrator Karen Mills during a hearing on Wednesday. The meeting provided any opportunity to examine the Administration's responsibility of overseeing a credit and equity portfolio of more than $90 billion. Our Committee expressed the concern that, as SBA's taxpayer-funded subsidy costs are increasing, it is important that they explore ways to reduce taxpayers' exposure, while still making credit opportunities available to small businesses. That means effective management, streamlining applications, and putting into place transparent policies that lenders can rely on to make good loans.

Sam Graves
Chairman

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