Leading the SBA Lending Industry

NAGGL started as more than an idea—it was a bold response to a growing need. In the early 1980s, Bailey “Biff” Barnard, along with about 45 dedicated SBA lenders, gathered at an airport hotel in Oakland, California. They shared a common vision: SBA lenders needed a national trade group to amplify their voices and ensure the success of government-guaranteed lending programs.

This group didn’t just talk about change; they acted. With the help of ten lenders who collectively loaned $10,000 to launch operations, they established the National Association of Government Guaranteed Lenders (NAGGL) as a California corporation. Their goal was ambitious—recruit SBA lenders from across the nation to join them in building a unified voice for the industry.

NAGGL's advocacy efforts began almost immediately, and the stakes were high. Under the Reagan administration, David Stockton, then the director of the Office of Management and Budget (OMB), proposed eliminating the SBA.

It was a defining moment for NAGGL. Despite being a young organization, they built a bipartisan coalition of Republicans and Democrats to push back against the proposal. Their efforts succeeded, saving the SBA and solidifying NAGGL’s reputation as a powerful advocate for the lending community and the small businesses they serve.

As word spread through the small business lending community, NAGGL ended its first year of operations with member institutions and hosted its first national conference with 84 attendees at the Copley Plaza Hotel in Boston, MA.

Bailey “Biff” Barnard served as NAGGL’s first president, supported by a part-time administrative assistant. As the organization grew, he recruited Tony Wilkinson, a young SBA banker from Stillwater (OK) National Bank, to succeed him. Initially serving as a volunteer president, Tony transitioned to NAGGL’s first full-time, paid president as membership and income increased.

The Credit Reform Act of 1995 fundamentally changed how small business loans are made. Before its passage, Congress was required by law to appropriate funds to cover any losses within the program as they occurred. The Act shifted this approach, requiring Congress to provide appropriations upfront, offering a clearer picture of how these programs would operate.

From that moment, NAGGL assumed the role of the industry's “subsidy rate watchdog.” Ensuring the program operates safely and soundly became—and remains—our top priority. This includes advocating for a subsidy calculation, essentially the cost of running the program, that is fair and acceptable to both borrowers and lenders.

One special time in NAGGL’s history was during the dark days following the September 11 terrorist attacks.  As a nation we were traumatized, and we were afraid.  We weren’t traveling.  We weren’t gathering in public spaces like restaurants and movie theaters.  We weren’t shopping except to meet our day-to-day needs.  And, as a result, small businesses across the country were suffering.

But as the lending community always does, we rose to the occasion.  Working together, SBA and the Congress crafted the STAR loan program (officially known as the Supplemental Terrorist Action Relief Program) which authorized special funding for 7(a) loans made to businesses that had been impacted by the events of September 11 no matter where they were located.  By providing nearly $2 billion in Star loans, 7(a) lenders helped affected businesses weather the economic storm and, like the American people, emerge stronger than ever.

President Obama signed the Small Business Jobs Act into law, which increased the amount of loans the SBA guaranteed and lowered 7(a) loan fees. After the law was passed, SBA lending rose nearly 30%.

When COVID-19 struck the nation, NAGGL members rose to the challenge. Thousands of SBA lenders worked tirelessly with small businesses in desperate need, facilitating Paycheck Protection Program (PPP) loans through the CARES Act. For over a year, they navigated unprecedented challenges, processing million in loans to provide critical lifelines that kept businesses afloat and employees on the payroll. Their efforts not only helped stabilize communities during a time of crisis but also underscored the vital role of SBA lending in supporting the backbone of the American economy—small businesses.

NAGGL proudly celebrated its 40th anniversary, marking four decades of unwavering dedication to the SBA lending industry. With over 900 member institutions and more than 12,000 SBA lenders represented nationwide, the milestone was a true testament to the strength and unity of our community. The celebration reached new heights with a record-breaking 1,000 attendees at the Annual Conference in Las Vegas, making it a landmark event in NAGGL’s history and a fitting tribute to our legacy of leadership and impact.