Us Congress 2023-2024 Regular Session

Us Congress House Bill HB449

Introduced
1/24/23  
Refer
1/24/23  

Caption

Microloan Transparency and Accountability Act of 2023 This bill modifies reporting requirements related to the Small Business Administration's (SBA) disbursement of certain financial assistance. Specifically, the bill requires the SBA to report certain metrics related to the disbursement of microloans to small businesses, including (1) the number, amount, and percentage of such loans that went into default in the previous year; (2) the extent to which microloans are provided to small businesses in rural areas; and (3) the average size, rate of interest, and amount of fees charged for each microloan.

Impact

The implications of HB 449 are significant as they pertain to the oversight of the microloan program, which is a crucial financial resource for small businesses, particularly in underserved areas. By instituting these reporting requirements, the bill aims to improve the understanding of how effectively microloans are being utilized, and whether they are reaching the intended populations. This could ultimately cultivate stronger support for small businesses, especially in rural areas where such financial assistance is often essential for economic development.

Summary

House Bill 449, known as the Microloan Transparency and Accountability Act of 2023, seeks to amend the Small Business Act to enhance transparency in the Small Business Administration's (SBA) microloan program. The bill mandates that the SBA provide detailed annual reports on various metrics related to microloan disbursements, including the number and percentage of loans that have gone into default, information on rural lending, average loan amounts, interest rates, and the fees charged. This initiative aims to increase accountability within the SBA and ensure that data on the effectiveness of microloans is readily available to the public and relevant legislative committees.

Sentiment

The reception of HB 449 has generally been positive among proponents who believe that increased transparency will lead to better outcomes for small business owners. Advocacy groups and stakeholders in the small business community have voiced strong support for the bill, emphasizing the necessity of data-driven approaches in policymaking. Conversely, there may be a sentiment of caution among those who worry about potential administrative burdens this might place on the SBA in terms of compliance and reporting obligations, as well as potential impacts on the availability of microloans due to stricter oversight.

Contention

Notable points of contention surrounding HB 449 include concerns regarding the balance between transparency and regulatory burden. While many stakeholders support enhanced disclosure, some may argue that excessive reporting requirements could impede the SBA's ability to efficiently manage the microloan program. The effectiveness of implementing these reporting metrics without stifling the program's operational capabilities will be a key topic as discussions around the bill continue.

Companion Bills

No companion bills found.

Previously Filed As

US SB77

STEP Improvement Act of 2023 This bill reauthorizes through FY2028 the Small Business Administration's (SBA) State Trade Expansion Program, which provides foreign trade assistance to small businesses, and it revises provisions related to the administration of the program. Specifically, the SBA must establish a time frame for, and provide certain information related to, the application process, and it must conduct an annual survey to solicit feedback on the program. The SBA must collect data on certain performance metrics such as the (1) total number of small businesses assisted by the program, (2) total dollar amount of export sales by participating small businesses, and (3) number of small businesses that have created new jobs through their participation in the program. The bill also requires applicants for participation to include a budget plan that outlines their intended use of funds awarded under the program.

US HB399

Small Business Advocacy Improvements Act of 2023 This bill expands the primary functions and additional duties of the Office of Advocacy of the Small Business Administration to include (1) examining the role of small businesses in the international economy, and (2) representing the views and interests of small businesses before foreign governments and international entities to contribute to regulatory and trade initiatives that may affect small businesses.

US HB10241

Microloan Improvement Act of 2024

US SB2720

Accountability and Clarity in Contracts to Engage Small Suppliers and Small Businesses Act

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 HB1749

Making the CFPB Accountable to Small Businesses Act of 2023

US HB298

Expanding Access to Capital for Rural Job Creators Act This bill requires the Advocate for Small Business Capital Formation within the Securities and Exchange Commission to report on issues encountered by rural-area small businesses.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US SB46

American Innovation and Manufacturing Act This bill establishes within the Small Business Administration a credit facility to provide financial assistance to investment companies that finance small manufacturing businesses.

US HB358

Small Business Regulatory Flexibility Improvements Act This bill modifies the rulemaking requirements and procedures of federal agencies under the Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996, including how agencies consider economic impact with respect to small entities. Specifically, the bill requires agencies to consider the direct, and the reasonably foreseeable indirect, economic effect of a rule on small entities when determining whether a rule is likely to have a significant economic impact. Further, the regulatory flexibility analysis for rules with a significant economic impact must include a detailed description of alternatives to a proposed rule that minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities. The bill also expands the types of agency actions (e.g., revisions to land management plans) that are subject to a regulatory impact analysis. The bill removes the authority for an agency to waive the regulatory flexibility analysis requirements and requires the Office of Advocacy of the Small Business Administration to issue rules for compliance with such requirements. The bill also modifies the procedures for the (1) gathering of comments for a proposed rule, (2) periodic review of agency rules, and (3) judicial review of final rules.

Similar Bills

TX SB1602

Relating to creating a microloan guarantee program using funds appropriated to the Texas Enterprise Fund.

CT SB01074

An Act Concerning Economic Development.

NC H774

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CA AB2831

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CT HB05498

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DC B25-0504

Ward 8 Community Investment Fund Clarification Act of 2023

NJ S3506

Establishes Urban Enterprise Zone Microloan Program in EDA to help certain businesses in Urban Enterprise Zones and UEZ-Impacted districts; appropriates $5 million.