WASHINGTON – Senators John Kennedy (R-La.) And Tim Scott (RS.C.) today introduced the Small Business Access to Credit Protection Act to prevent Democrats from transforming the Small Business Administration (SBA) into a direct lender for the 7 (a) through their partisan spending plan.
âFraud and inefficiency characterize the history of the Small Business Administration in direct lending. The government should not encroach on a space where private lenders are already doing a good job of providing funds to small businesses in need. I am proud to join with Senator Scott in preventing the SBA from replacing the community and other private lenders with bureaucrats, â Kennedy said.
âForcing community banks and local credit unions to compete with a massive government agency is ineffective and wrong. It does not make sense to direct taxpayer money through the federal government to loan it to small business owners at interest. This is just another example of the Democrats’ misguided plan for a grand government takeover of virtually every aspect of American life and private institutions, â Scott said.
The Small Business Access to Credit Protection Act would prevent the SBA from issuing direct loans 7 (a).
- In October, Kennedy sent a letter to Majority Leader Chuck Schumer (DN.Y.), President Nancy Pelosi (D-Calif.), And House and Senate Small Business Committee Chairs Ben Cardin. (D-Md.) And Nydia VelÃ¡zquez (DN. Y.) warning against their plans to make the SBA a direct lender.
- The SBA’s office of the inspector general estimates that the federal government’s Economic Disaster Lending Program (EIDL) has issued $ 79 billion in potentially fraudulent loans. The EIDL program has been riddled with fraud and unnecessary delays throughout the pandemic.
- The American Bankers Association, the Consumer Bankers Association, the Independent Community Bankers of America, the Bank Policy Institute, the Credit Union National Association, and the National Association of Federally Insured Credit Unions support the Access to Credit Protection Act for small businesses.
Sense. Rand Paul (R-Ky.), Pat Toomey (R-Penn.), John Thune (RN.D), Jim Risch (R-Idaho), Mike Crapo (R-Idaho), Jim Inhofe (R-Okla.) , John Barrasso (R-Wyo.), Roger Marshall (R-Kan.), Steve Daines (R-Mont.), Thom Tillis (RN.C.), Kevin Cramer (RN.D.), James Lankford (R -Okla.), John Cornyn (R-Texas), Jerry Moran (R-Kan.), Bill Cassidy (R-La.), John Boozman (R-Ark.), Mike Rounds (RS.D.) and Rick Scott (R-Fla.) Also co-sponsored the legislation.