Us Congress 2023-2024 Regular Session

Us Congress House Bill HB5848

Introduced
9/29/23  

Caption

To prohibit the Administrator of the Small Business Administration from directly making loans under the 7(a) loan program, and for other purposes.

Impact

The implementation of HB 5848 would alter the landscape of small business financing by redirecting the lending process through other channels or intermediaries instead of allowing the SBA to provide loans directly. Supporters of the bill argue that this change will streamline the application process and reduce potential inefficiencies associated with federal direct lending. Critics, however, may contend that such a prohibition could limit the accessibility of loans for small businesses that rely heavily on the SBA for funding, especially those in underserved communities.

Summary

House Bill 5848 aims to prohibit the Administrator of the Small Business Administration (SBA) from directly making loans under the 7(a) loan program, which has historically provided crucial funding to small businesses. The bill is introduced to overhaul the current loan provision framework within the SBA, focusing on maintaining the agency's role as a facilitator rather than a direct lender. This is expected to have significant implications for how small businesses access needed capital and navigate financial challenges, particularly during economic downturns.

Contention

Discussions surrounding HB 5848 are likely to revolve around the impact this bill may have on small business growth and economic development. Proponents argue that by eliminating direct lending, the SBA can better leverage private sector partnerships for small business financing. However, detractors raise concerns that this approach could lead to an increase in loan denial rates for small businesses that may not have relationships with banks or other lending institutions. The potential for reduced funding access could spark significant debate regarding the SBA's role in supporting small businesses in an inclusive manner.

Companion Bills

US SB3992

Related Protecting Access to Credit for Small Businesses Act

Previously Filed As

US HB9036

To amend the Small Business Act to provide for cancellation or repayment for Small Business Administration disaster loans, and for other purposes.

US SB5634

A bill to establish a grant program under the Small Business Administration, and for other purposes.

US HR458

Providing for consideration of the bill (H.R. 2483) to reauthorize certain programs that provide for opioid use disorder prevention, treatment, and recovery, and for other purposes; providing for consideration of the bill (H.R. 2931) to direct the Administrator of the Small Business Administration to relocate certain offices of the Small Business Administration in sanctuary jurisdictions, and for other purposes; providing for consideration of the bill (H.R. 2966) to require the Administrator of the Small Business Administration to require an applicant for certain loans of the Administration to provide certain citizenship status documentation, and for other purposes; and providing for consideration of the bill (H.R. 2987) to amend the Small Business Act to require a limit on the number of small business lending companies, and for other purposes.

US HB5427

To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes.

US HB7071

To amend section 7(b) of the Small Business Act to make disaster loans available for damages caused by prolonged power outages, and for other purposes.

US HB9610

To amend the Small Business Act to waive the accrual of interest and payments for certain disaster loans for a year, and for other purposes.

US HB5426

To require the Administrator of the Small Business Administration to provide a link to resources for submitting reports on suspected fraud relating to certain COVID-19 loans.

US HB414

Investing in Rural Manufacturing Act This bill authorizes the Small Business Administration to make loans for certain costs to businesses that manufacture goods essential to critical infrastructure sectors in rural areas. Businesses that meet at least 75% of their job creation goals under such loans may receive partial loan forgiveness.

US HB825

Assisting Small Businesses Not Fraudsters ActThis bill prohibits individuals convicted of certain financial crimes from receiving assistance from the Small Business Administration (SBA).Specifically, the bill prohibits individuals who have been convicted of a crime involving financial misconduct or a false statement with respect to certain COVID-19 loans (e.g., Paycheck Protection Program loans, Restaurant Revitalization Fund grants, and Shuttered Venue Operators grants) from receiving any financial assistance from the SBA (other than a disaster loan).The prohibition includes SBA assistance to small businesses that have an owner, officer, director, or key employee who has been convicted of such a crime.

US HB3830

To require the Administrator of the Small Business Administration to expand eligibility for certain contracts, and for other purposes.

Similar Bills

No similar bills found.