WASHINGTON, D.C. - Today, U.S. Representative Byron Donalds (R-FL), U.S. Senators John Hickenlooper and Tim Scott, and U.S. Representative Jason Crow sent a letter urging Small Business Administrator Isabella Guzman to lift the SBA’s moratorium on allowing financial technology firms, known as fintechs, to serve as Small Business Lending Companies (SBLC) and to broaden the criteria of the SBA’s flagship 7(a) small business loan program to include fintechs.

The Members of Congress previously introduced the Expanding Access to Credit for Small Business Act, which included a provision to allow more fintech companies to participate in the 7(a) program. 

“Affordable access to capital is crucial for entrepreneurs and small businesses to succeed in starting, and growing their businesses. However, many entrepreneurs and small firms, especially women, minorities, and those living in rural areas, struggle to access the traditional banking system,” wrote Donalds, Hickenlooper, Scott, and Crow. 

“Modernizing the 7(a) program will allow fintech companies to continue to remove obstacles to access to credit for many small businesses who face difficulty participating in SBA lending programs. Lifting the moratorium on new SBLC licenses will allow additional innovative lenders to securely provide affordable credit to small businesses, especially those that have traditionally been underserved,” they continued.

Full text of the letter is available HERE.

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