2008-06-23T14:01:30Z opencongress.org tag:opencongress.org,2007:/bill/comments/50286 2008-06-23T14:01:30Z tag:opencongress.org,2008-06-23:/comment/27672 markdanford Small businesses' financing needs are increasing, and the high cost of real estate and equipment makes it critical to recognize that reality and to offer larger long-term loans through SBA's 7(a) business loan program. In addition, the SBA portfolio needs more large loans to remain healthy. Larger loans pay much higher fees than smaller loans. With an overabundance of smaller loans, the federal government is getting less up-front income from loans today than it has over the last several years. And, larger loans tend to be secured by real estate, which means higher recoveries in the event of a default. The use of an alternative size standard based on a business's net worth and income will simplify the eligibility determination that is a part of every SBA 7(a) loan process and offer lenders an option to assist small businesses in qualifying for 7(a) loans. As an experienced SBA lender, I have seen fees for questionable SBA lender oversight increase to a point where many lenders are leaving the program or scaling back their operations. It is important that, as S. 2920 requires, SBA improve their lender oversight and implement meaningful measures that help lenders, the agency, and congressional oversight Committees measure the performance of SBA's loan programs. Requiring the SBA to develop and implement oversight technology to improve portfolio performance and oversight of the SBA's 7(a) and 504 loan programs is critical, and by requiring measurement of loan liquidation, currency, recovery, and delinquency, and to use these measurements to determine lender portfolio quality and conduct lender oversight would be a step forward in that effort.