SBA Overhauling Biden-Era Loan Program Following High Default Rates

SBA Overhauling Biden-Era Loan Program Following High Default Rates

The Small Business Administration (SBA) is overhauling a Biden-era lending initiative, citing its “alarmingly high rates” of loan default, the agency said in a May 19 statement. The Community Advantage Small Business Lending Company program was designed to issue 7(a) loans to “underserved communities,” the SBA said. In the 7(a) loan program, the government offers loan guarantees to lenders, which allows the loan providers to advance credit to sm…

SBA Overhauling Biden-Era Loan Program Following High Default Rates – altnews.org

Authored by Naveen Athrappully via The Epoch Times (emphasis ours), The Small Business Administration (SBA) is overhauling a Biden-era lending

SBA targets community loan program expanded under Biden

The Small Business Administration is implementing a freeze on new Community Advantage lenders, citing a surge in problem loans. The program grew during the previous administration as part of a push to expand the access that entrepreneurs who are members of disadvantaged groups have to capital.

Biden Forgives Student Loans and … Behold, Defaults Skyrocket

Here’s an economics lesson that belongs in the textbooks. Student loan debt soared to more than $1.5 trillion during the Biden presidency, and the response by Washington was to “forgive” hundreds of billions of these unpaid loans by deadbeat borrowers and let the taxpayers pick up the tab. It was never clear why the universities that charge exorbitant tuitions that have reached more than $75,000 a year at many elite schools shouldn’t bear the co…

Why File: A Once 8(a), Always 8(a) Protest - SmallGovCon

As our SmallGovCon readers might know, the SBA’s 8(a) Business Development Program is often thought of as the golden goose of federal government contracting, at least for small businesses. And it’s true, in some respects. While it is the most difficult of the SBA’s socioeconomic programs to gain admittance to, if admitted, you stand to reap large benefits such as access to competitive and sole-source contracts. And another SBA rule limits the ab…

SBA halts expansion of high-risk loan program amid soaring defaults

The U.S. Small Business Administration (SBA) has announced an immediate moratorium on the expansion of the Community Advantage Small Business Lending Company (SBLC) program, citing unsustainable default rates and concerns over financial oversight. The program, revived under the Biden administration to provide 7(a) loans to underserved communities through mission-based, non-regulated lenders, has reported a 7% default rate over the past year—more…