Expanding Access to Affordable Credit for Small Businesses Act

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 118 hr 3604, 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 by the Financial Services Committee.

The key provisions of the bill include measures to streamline the process for small businesses to access credit, such as reducing paperwork requirements and simplifying loan applications. The bill also seeks to increase the availability of credit for small businesses by encouraging financial institutions to offer more favorable terms and interest rates.

Additionally, the bill includes provisions to support small businesses in underserved communities, such as minority-owned businesses and those in rural areas. This includes funding for programs that provide technical assistance and financial education to help small businesses navigate the credit application process. Overall, the Expanding Access to Affordable Credit for Small Businesses Act aims to level the playing field for small businesses and help them thrive in today's competitive market. It is a bipartisan effort to support the backbone of the American economy and promote economic growth and job creation.