WASHINGTON, DC – The U.S. House of Representatives on Thursday passed the Microloan Improvement Act of 2021 (H.R. 1502), a bipartisan bill introduced by Congressman Andy Kim (NJ-03) to help small businesses access much needed capital to help them through the coronavirus crisis.
“We need to do everything we can to help our small businesses in this critical time,” said Congressman Kim. “We’ve seen too many times during this crisis small businesses that have missed out because the system simply doesn’t reach them. This bill will make a big difference for small businesses across our country, and I’m proud to work with this bipartisan team to have this bill passed. I hope my colleagues in the Senate move quickly to take it up and pass it with the same bipartisan effort we showed today.”
The bill is co-sponsored by Congressman Andrew Garbarino (NY-02), Congressman Tim Burchett (TN-02), and Congresswoman Marie Newman (IL-03).
The Microloan Improvement Act would increase the number of nonprofit, community-based lenders eligible for the lowest interest rate on loans from the SBA and allow these lenders to offer lines of credit to small businesses, while extending the maximum repayment term for loans. This would help cut through bureaucratic red tape identified as restricting lending to small businesses looking to grow and create jobs.
“This bipartisan bill is straightforward and effective: it increases the number of nonprofit, community-based lenders that can offer loans through the SBA’s microloan program,” Congressman Burchett said. “I’m proud to be a part of this effort that will help aspiring small business owners and entrepreneurs chase down the American Dream.”
In addition to H.R. 1502, the House also passed H.R. 1487, the Microloan Transparency and Accountability Act. The bipartisan bill, which was co-sponsored by Congressman Kim, would enhance microloans in rural areas and provide new reporting to Congress to ensure that the program is best serving America’s small business owners.
The Microloan Program in the SBA was created by Congress in 1991 to make funds available to community-based lenders, who in turn make loans to eligible borrowers. Many of these borrowers are underserved entrepreneurs who may not have a credit history or significant business experience.
Rep. Kim’s Microloan Improvement Act of 2021 passed by a margin of 397 to 16.
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