WASHINGTON—Today, Administrator Maria Contreras-Sweet, the head of the U.S. Small Business Administration (SBA) and Dan Berger, President of the National Association of Federal Credit Unions (NAFCU), signed a Memorandum of Understanding (MOU) to invest in America’s future entrepreneurs and economy.
“The SBA and NAFCU are formalizing a national partnership to promote small business lending. Credit unions help their members with so many other financial needs, and we want them to be able to help the entrepreneurs they serve with SBA loans as well,” says Contreras-Sweet. “Credit unions have stepped up and stepped in to fill a real need, adding outlets for SBA loans in communities that need our assistance the most. SBA’s joint effort with NAFCU will make credit unions even more valuable as we work to give credit where it’s due to small business across the nation.”
“We appreciate SBA Administrator Contreras-Sweet’s attention to microlending and her innovative efforts to engage credit unions in this space,” said Berger. “This partnership is particularly valuable to credit unions because each dollar of an SBA-guaranteed business loan from a credit union is excluded from the credit union’s member business lending cap. This affords credit unions much-needed flexibility to serve their small business members. Credit unions have always wanted to do more to help their small business members, and this initiative will go a long way toward making that possible.”
The partnership between the SBA and credit unions will increase the availability of small dollar loans by providing more outlets entrepreneurs can access SBA products in their neighborhoods. Second, it will help small business owners get capital for investments into their new or existing business they may have otherwise put on a high-interest credit card or a personal credit line. Third, it will make the small dollar loans more accessible to underserved communities, including women and minorities.
About the Small Business Administration (SBA)
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. We recognize that small business is critical to our economic recovery and strength, to building America’s future, and to helping the United States compete in today’s global marketplace. Although SBA has grown and evolved in the years since it was established in 1953, the bottom line mission remains the same. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam. www.sba.gov
About National Association of Federal Credit Unions (NAFCU)
The National Association of Federal Credit Unions (NAFCU) is a direct membership association committed to representing, assisting, educating and informing its member credit unions and their key audiences. Founded in 1967, NAFCU is an independent voice in Washington, focusing exclusively on the needs and issues of federal credit unions. NAFCU’s specific, overriding purpose: to directly shape the laws and regulations under which federal credit unions operate.
SBA’s participation is not an endorsement of the views, opinions, products or services of any person or entity.
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