AmiSight 5/1: Big Changes Are Coming to the SBA. That’s a Good Thing
- Ami Kassar
- May 1
- 1 min read
The Trump Administration has moved quickly to make changes to the Small Business Administration. As I have written before and as I testified before Congress, significant changes were made to the SBA during the Biden Administration, which strove to open up SBA lending as much as possible. They did this by removing guardrails from the program to make it easier for lenders to make loans and reducing fees to make loans more affordable. These changes rapidly caused challenges. For example, the lower costs and the increased defaults resulted in the SBA turning cash-flow negative for the first time in 14 years. That was unsustainable.
Many of the changes made during the Biden era are now being reversed. Inevitably, these changes will make it more expensive and more difficult for business owners to borrow money. That may seem like a bad thing, but lending is a tricky business. And when a government guarantees the loans, it’s even trickier. When loans go bad, we are all on the hook.
Learn more in my latest 21 Hats column
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