Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC.  Mike writes monthly on the commercial mortgage market.  Check back each month for his commentary.  

On Jan. 31 Senator Kelly Loeffler (R-GA) appeared before the Small Business and Entrepreneurship Committee for a confirmation hearing for her proposed post as SBA Administrator. Senator Todd Young (R-IN) chairs this Committee and directed the hearing. 

A number of to-do’s were discussed in the hearing. (Identified by Loeffler as improvements to make, and confirmed by Young as supported by the Committee.) 

·  Reduce barriers to access of capital (SBA loans),

·  Prioritize & incentivize small business adoption of technology – specifically mentioned favorably was AI as a qualified use of funds in 7(a) loans. 

·  Review programs currently available to see that they actually work, 

·  Get SBA employees back in the office (As of this writing, this agency has not been identified for a reduction in staff by DOGE.), 

·  Increase SBA cost-to-benefit efficiency, 

·  Increase employee training, 

·  Improve response time for SBA inquiries.

Senator Todd and 3 other Senators have drafted the “Small Business Technology Advancement Act” to promote the use of technology by small businesses. 

Acknowledged by Senators Loeffler and Young is that 2 out of 3 new jobs are created by small businesses, as the SBA defines small businesses. 

The horizon seems clear … the Trump White House is supporting small business as a means of Making America Great Again.

SBA loans are an identified tool in supporting small businesses, e.g., acquisition capital, expansion capital, working capital, development capital.

The SBA guarantees 75% of the loan amount to the bank/lender who makes the loan.  If the borrower puts (for instance) 15% down, the bank has 10% exposure (risk).  In today’s environment these loans set well on bank balance sheets. 

I personally have over 25 years of originating SBA loans (as well as other conventional loans).  If you’re interested in growing with Trump’s new economy, give me a call.

You can watch the Young-Loeffler hearing at Senator Young’s website,

https://www.youtube.com/watch?v=3N4o8okTWRs.  Select “Young Discusses Keeping Small Businesses Competitive …” from the videos offered … a 5 min 23 sec. listen. 

Senator Loeffler was confirmed to her new position on Feb. 19.