THE MBFS COO and resident SBA expert joins Mark today to try to make sense of the 2025 regulatory chaos. What's going on with the SBA? What changes are afoot? Are they good or bad for credit unions?

IN THIS EPISODE:

• (00:00) Intro
• (01:48) Jeff Lyons’ professional background and what has happened with SBA with the onset of the new administration
• (05:30) Discussion of lending fees and zero subsidy 
• (08:00) Discussion of PPP Loans and non-bank, non-regulated lenders, delinquencies, and selling off SBA loans for a profit
• (15:49) Discussion of the stability of the SBA in uncertain times and what MBFS can do for a credit union to facilitate the SBA process
• (20:44) Jeff shares why SBA is beneficial for your credit union

KEY TAKEAWAYS: 

• The SBA is shifting back to pre-COVID operations, reinstating previously waived borrower lending fees. This change aims to stabilize the SBA's finances, which had gone into negative cash flow due to fee eliminations during the pandemic.
• The new SBA Administrator, Kelly Loeffler, has brought staff back to in-person work and announced plans to streamline SBA operations. However, concrete changes in process efficiency are still pending, and a significant workforce reduction (about 43%) is underway to adjust for post-PPP staffing levels.
• Due to higher delinquency rates and lax underwriting standards in the SBA loan portfolio, non-bank fintech lenders are under increased scrutiny. As a result, future non-bank SBA lending licenses are unlikely, reinforcing the SBA’s preference for traditional, regulated lenders like credit unions.
• Lender Service Providers (LSPs) like MBFS offer valuable assistance navigating the SBA loan process, but lenders must remain actively involved. LSPs can provide expertise and guidance to credit unions, helping them understand the requirements and streamline the application. However, the responsibility for the member relationship, underwriting, and overall loan management ultimately rests with the lending institution.

RESOURCE LINKS: 

Mark Ritter - Website

Mark Ritter - LinkedIn

Jeff Lyons - LinkedIn

BIOGRAPHY: 

MBFS provides credit unions with all aspects of business lending services. 

Nu Direction Lending is an online financial technology company based in Feasterville-Trevose Pa. The company provides funding from $25,000 to $500,000 directly to small businesses through an automated lending platform.