Executive Letter: WBA Participates in SBA Made in America Roundtable
By Rose Oswald Poels
One of SBA’s top priorities under the Trump Administration is a deeper engagement with manufacturing communities where access to capital and federal contracting opportunities may be more limited. I was invited to represent the banking industry at the Milwaukee roundtable partner meeting last week where senior SBA officials listened first to manufacturers then separately to capital partners on some of the challenges facing them when securing capital. I also had the opportunity after the partner meeting to interview SBA Associate Administrator Office of Field Operations Lisa Shimkat, SBA Regional Administrator Everett Woodel, SBA Acting Chief Counsel Chip Bishop, and SBA Associate Administrator Office of Capital Access Thomas Kimsey.
The Milwaukee meeting was one of several roadshow sessions SBA is conducting around the country as part of its Made in America Manufacturing Initiative. This Initiative commits SBA to a deeper collaboration and coordination of federal agency resources designed to: increase access to capital, improve opportunities for public and private investments in support of manufacturing in America, and help small businesses export their products on a global scale.
Staff shared during the partner roundtable meeting that SBA has promised to cut $100 billion in federal regulations that small business and manufacturers must follow as part of this Initiative. Several partners gave examples during the meeting of improvements that could be made to existing SBA programs to make them more attractive and impactful for manufacturers and lenders given the unique capital-intensive needs of manufacturers. SBA staff acknowledged that manufacturing is an industry that has not been a focus for the agency’s programs over the years but that is now changing.
Several partners at the meeting, which included representatives from WBD, WWBIC, RCEDC and SBDC, among others, reiterated the need to change the SBA 504 program to make it more attractive for both lenders and manufacturers. Suggestions included lowering fees, streamlining and automating the approval process, lowering minimum borrower contribution requirements, increasing the maximum debenture amount per project, and separating the real estate and equipment components of a deal to be considered two projects rather than a single project. At the meeting, WBD submitted a lengthy written memo with several suggestions for SBA to consider.
During my interview, SBA staff emphasized that their goals with the “Made in America” Initiative are to increase awareness and usage of SBA programs by lenders for manufacturers while making changes to programs that encourage more SBA lending to manufacturers. They acknowledge there is a lack of awareness of SBA capital programs by lenders, and a perception among some lenders that the programs are burdensome and unattractive for their customers. Staff encourages lenders to learn more about SBA programs by signing up for the communications from the Wisconsin office, visiting their website which includes a page focused on manufacturing, attending workshops, and calling the lender’s line. WBA will keep its members apprised of changes to SBA programs as they occur.
