WASHINGTON – Sen. John Kennedy today joined Sen. Tim Scott (RS.C.) and more than 10 other senators in writing to Senate Majority Leader Chuck Schumer (DN.Y.), at the House Speaker Nancy Pelosi (D-Calif.), Senate Small Business Committee Chair Ben Cardin (D-Md.) and House Small Business Committee Chair Nydia Velazquez (DN.Y.) to oppose a Democratic plan that would make the Small Business Administration a direct lender through their $3.5 trillion reconciliation plan.
“We are writing today about a deeply 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 7(a) loans. We believe this would be an inefficient, costly and unfair position to place both lenders and borrowers,” wrote the senators.
“Giving the SBA the reins to run its own lending program will make it harder for existing lenders to continue to participate and potential lenders to even want to join the program. Authorizing $4.5 billion over 10 years for this program with little or no oversight will also raise the level of concern about how the money is being used. Without proper parameters, the direct lending program can fall for a lot of fraud and abuse,” explained the senators.
“As the United States emerges from the COVID-19 pandemic, the growth of small businesses and entrepreneurship must be a top priority. ” conclude 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.