Lloyd Bentsen: “The provision also states, Mr. Chairman, that any holdback or exposure requirement should be applied uniformly to both…”

“The provision also states, Mr. Chairman, that any holdback or exposure requirement should be applied uniformly to both banks and nonbanks alike, thereby ending the prohibition on banks for selling the nonguaranteed portion of certain SBA loans, but also provides the SBA the discretion to accept alternative risk retention provisions. It is my understanding that acceptable alternative risk retention provisions such as, but not limited to, the reserves required to achieve an investment grade rating would be applied on a lender-by-lender basis based on the structure of the securitization and the historical loan performance of the lender.”