NAGGL | Inside the SBA

NAGGL’s legislative efforts are important, but are only a portion of the representation we offer our members. Equally important is what we accomplish working with the SBA, where most of the policies affecting you are formed. Our long history of cooperation with the Agency has included milestones like:

Alternative Interest Rate Index; WAC Pools
Although it took many years and an economic crisis, it was NAGGL that convinced SBA to use its mandated authority to implement the use of an alternative interest rate index, LIBOR, in November 2008. (5000-1081) In an effort to assist its broker-dealer members, NAGGL advocated Weighted Average Coupon pools, which were implemented via the same notice.

Created Program Stability - Loan Cap to Record Year
Loan caps were regular occurrences during the first term of the Bush Administration. Fiscal year 2004 began with a four-month loan cap, but through extensive grassroots efforts, the year ended with a full-strength program, record loan volume of over $12 billion, and program stability that has eased worries for SBA lenders throughout the nation and helped grow the 7(a) program to record levels.

NEPA
In 2001, environmental groups filed suit against the SBA, claiming that its loan programs violated the National Environmental Policy Act (NEPA) by contributing to urban sprawl. The groups requested that the programs immediately shut down and that all new loans over $250,000 be subject to prohibitive environmental research pre-approval. NAGGL became a party to that lawsuit and worked with the SBA to help form a policy that would meet the SBA’s NEPA compliance obligations without jeopardizing the great majority of SBA loans.

IRS Tax Verifications
In 1996 and 1998, NAGGL conducted member surveys that were instrumental in showing that SBA's pre-closing requirement for IRS tax return verification was causing a significant number of loan closing delays. Through negotiations with SBA Financial Assistance and leadership in the Office of Inspector General, a new, more efficient process was instituted.

SOP Revisions
In 1996 and 1997, NAGGL's Technical Issues Committee worked extensively with SBA leadership on the complete rewrite of the SBA's Standard Operating Procedures Manuals. At the suggestion of NAGGL Committee members, improvements were made, providing clearer guidance and more useful information for lenders and SBA personnel.