Financial Services and General Government Appropriations Act, 2024

Floor Speech

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Mr. MEUSER. Mr. Chair, I yield myself such time as I may consume. I rise today in support of my amendment No. 70 to H.R. 4664.

In May of this year, the Small Business Administration implemented a final rule on affiliation and lending criteria that eliminated longstanding guardrails and prudent lending standards for its flagship 7(a) loan program.

Chief among these changes is the SBA's decision to eliminate the prescriptive lending criteria that has allowed the program to function with integrity for decades.

The 7(a) lending program offers government-backed loans to businesses that are guaranteed by the taxpayer up to 85 percent. By removing the prudent underwriting standards for all lenders in the program, the SBA has opened up the program to increased fraud and losses. These changes will add risk to the SBA's loan portfolio. If enough of these loans go bad, Congress will have to step in and bail out the program to keep it operational, meaning the weak underwriting standards implemented by this rule could lead to a significant loss of taxpayer dollars. Mr. Chairman, such added risk is unacceptable when taxpayers are on the hook.

This year our country experienced the largest bank failures we have seen since the 2008 financial crisis. The SBA should not be moving forward with their plan to reduce underwriting standards in the 7(a) lending program during these uncertain economic times.

This important amendment would undo the troubling underwriting changes made by the Biden administration. This commonsense measure will restore guardrails on these loans and ensure the longevity of the 7(a) loan program.

Mr. Chair, I thank Small Business Committee Chairman Roger Williams along with Representatives Luetkemeyer, Stauber, Ellzey, and Alford for their cosponsorship of this amendment. I urge my colleagues to support it.

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Mr. MEUSER. Mr. Chairman, my amendment will strengthen the already meaningful piece of legislation we are considering today, which cuts wasteful spending and reduces burdensome, costly regulations on small businesses.

Of particular importance, the underlying legislation prohibits the Biden administration from implementing the SEC's climate disclosure rule, which prioritizes ideology over capital formation for investors.

The legislation also rightfully brings the Consumer Financial Protection Bureau under the purview of the congressional appropriations process. The CFPB has lacked transparency and accountability for years while being funded directly by the Federal Reserve, and this bill will give Congress the authority to provide appropriate oversight.

Additionally, the bill will halt the CFPB's implementation of its onerous 1071 small business data collection rule, which places undue costs and compliance burdens on America's small businesses and lenders.

Mr. Chairman, H.R. 4664 is a win for taxpayers, consumers, and for the American financial system. My amendment will help make it an even greater win for small businesses by protecting the soundness and integrity of a program that offers access to affordable and reliable capital for entrepreneurs.

I urge my colleagues to support this commonsense amendment and the underlying legislation, and I yield back the balance of my time.

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