Expanding Access to Affordable Credit for Small Businesses Act

12/30/2022, 3:04 AM

Expanding Access to Affordable Credit for Small Businesses Act

This bill establishes rules related to the authorization of lending institutions (including banks, small business lending companies, non-federally regulated lenders, and non-depository lending institutions) to make loans under the 7(a) Program of the Small Business Administration (SBA). Under the 7(a) Program, the SBA provides business loans and loan guaranties to small business borrowers unable to obtain financing elsewhere.

Specifically, the SBA must ensure that these lending institutions and other entities (1) provide an independent audit that examines adherence to all applicable federal laws and regulations regarding anti-money laundering, counterterrorist financing, sanctions, and financial crimes; and (2) implement a compliance program that is designed to conform with relevant anti-money laundering laws and regulations.

Bill 117 HR 6217, also known as the Expanding Access to Affordable Credit for Small Businesses Act, aims to provide small businesses with greater access to affordable credit. The bill was introduced in the House of Representatives and is currently under consideration.

The main goal of this legislation is to address the challenges that small businesses face in obtaining financing. Small businesses often struggle to secure loans from traditional financial institutions, which can hinder their ability to grow and create jobs. By expanding access to affordable credit, this bill seeks to support the growth and success of small businesses across the country.

Specifically, the Expanding Access to Affordable Credit for Small Businesses Act includes provisions that would incentivize financial institutions to provide loans to small businesses at lower interest rates. This would make it easier for small businesses to access the capital they need to invest in their operations, hire new employees, and expand their businesses. Additionally, the bill includes measures to streamline the loan application process for small businesses, making it easier for them to navigate the complex financial system and secure the funding they need. By reducing barriers to obtaining credit, this legislation aims to level the playing field for small businesses and help them compete more effectively in the marketplace. Overall, the Expanding Access to Affordable Credit for Small Businesses Act is designed to support the growth and success of small businesses by increasing their access to affordable credit. If passed, this legislation could have a significant impact on the small business community and help to drive economic growth and job creation across the country.
Congress
117

Number
HR - 6217

Introduced on
2021-12-09

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

12/9/2021

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Expanding Access to Affordable Credit for Small Businesses Act

This bill establishes rules related to the authorization of lending institutions (including banks, small business lending companies, non-federally regulated lenders, and non-depository lending institutions) to make loans under the 7(a) Program of the Small Business Administration (SBA). Under the 7(a) Program, the SBA provides business loans and loan guaranties to small business borrowers unable to obtain financing elsewhere.

Specifically, the SBA must ensure that these lending institutions and other entities (1) provide an independent audit that examines adherence to all applicable federal laws and regulations regarding anti-money laundering, counterterrorist financing, sanctions, and financial crimes; and (2) implement a compliance program that is designed to conform with relevant anti-money laundering laws and regulations.

Bill 117 HR 6217, also known as the Expanding Access to Affordable Credit for Small Businesses Act, aims to provide small businesses with greater access to affordable credit. The bill was introduced in the House of Representatives and is currently under consideration.

The main goal of this legislation is to address the challenges that small businesses face in obtaining financing. Small businesses often struggle to secure loans from traditional financial institutions, which can hinder their ability to grow and create jobs. By expanding access to affordable credit, this bill seeks to support the growth and success of small businesses across the country.

Specifically, the Expanding Access to Affordable Credit for Small Businesses Act includes provisions that would incentivize financial institutions to provide loans to small businesses at lower interest rates. This would make it easier for small businesses to access the capital they need to invest in their operations, hire new employees, and expand their businesses. Additionally, the bill includes measures to streamline the loan application process for small businesses, making it easier for them to navigate the complex financial system and secure the funding they need. By reducing barriers to obtaining credit, this legislation aims to level the playing field for small businesses and help them compete more effectively in the marketplace. Overall, the Expanding Access to Affordable Credit for Small Businesses Act is designed to support the growth and success of small businesses by increasing their access to affordable credit. If passed, this legislation could have a significant impact on the small business community and help to drive economic growth and job creation across the country.
Alternative Names
Official Title as IntroducedTo authorize the Administrator of the Small Business Administration to license lending institutions to make loans under section 7(a) of the Small Business Act, and for other purposes.

Policy Areas
Commerce

Comments

Recent Activity

Latest Summary5/5/2022

Expanding Access to Affordable Credit for Small Businesses Act

This bill establishes rules related to the authorization of lending institutions (including banks, small business lending companies, non-federally regulated lenders, and...


Latest Action12/9/2021
Referred to the House Committee on Small Business.