WASHINGTON – Senator John Kennedy today joined Senator Tim Scott (RS.C.) and more than 10 other Senators in writing to Senate Majority Leader Chuck Schumer (DN.Y.), President of the House Nancy Pelosi (D-Calif.), Senate Small Business Committee Chairman Ben Cardin (D-Md.) And House Small Business Committee Chair Nydia Velazquez (DN.Y.) oppose a Democratic plan that would make the Small Business Administration a direct lender through their $ 3.5 trillion reconciliation plan.
âWe are writing today about a very concerning provision contained in the House Small Business section. . . of the Budget Reconciliation Bill, which would authorize nearly $ 4.5 billion over 10 years for the Small Business Administration (SBA) to issue direct loans 7 (a). We believe it would be an inefficient, costly and unfair position to put both lenders and borrowers â, wrote the senators.
âGiving the SBA the reins to run its own loan program will make it more difficult for existing lenders to continue to participate and potential lenders who may even want to join the program. A 10-year $ 4.5 billion authorization for this program with little to no oversight will also increase the level of concern about how the money is being used. Without proper parameters, the direct loan program can fall into a lot of fraud and abuse â, the senators explained.
âAs the United States emerges from the COVID-19 pandemic, growing small businesses and entrepreneurship must be a top priority. Unfortunately, under the reconciliation legislation currently under consideration, among other provisions, allowing the SBA to establish and manage a loan program that it will regulate itself will hurt job creators and hurt the economy. ‘economy of the United States as a whole’, concluded the senators.
Sense. Kevin Cramer (RN.D.), Bill Cassidy (R-La.), Roger Marshall (R-Kan.), Thom Tillis (RN.C.), John Barrasso (R-Wyo.), James Lankford (R- Okla.), Todd Young (R-Ind.), Steve Daines (R-Mont.), Jim Risch (R-Idaho), Mike Crapo (R-Idaho), Jim Inhofe (R-Okla.), Joni Ernst ( R-Iowa) and Jerry Moran (R-Kan.) Also signed the letter.
The letter is available here.