SBA Nominee Queried on Going Concern Appraisals
Maria Contreras-Sweet, the nominee for administrator of the U.S. Small Business Administration, faced questions during a Senate confirmation hearing Feb. 12 on a policy change that prevents qualified real estate appraisers from performing going concern appraisals.
During the hearing, Sen. Deb Fischer, R-Neb., asked Contreras-Sweet whether she would reconsider an SBA policy that disqualifies real estate appraisers from performing going concern appraisals of special purpose properties should she be confirmed by the Senate.
In response, Contreras-Sweet rested on her experience as an SBA lender in understanding the difficulties of small business owners seeking to obtain financing, and she offered to study the inner-workings of the agency and delve into the issue should she be confirmed. In response, Sen. Fischer reiterated the difficulty that many small business owners face in expanding operations in rural areas and how difficult it is for rural lenders to find qualified appraisers, let alone two appraisers for a loan.
The Appraisal Institute, the American Bankers Association and the American Society of Farm Managers and Rural Appraisers have called on the SBA to reverse course and reinstate qualified real estate appraisers as service providers of going concern appraisals in SBA SOP 50-10F. The organizations wrote to the agency in November urging reversal, and the agency is said to be reviewing the issue.
View the exchange by advancing to the one-hour mark.