Fair Access to Small Business Lending Act of 2023

12/15/2023, 4:07 PM

Fair Access to Small Business Lending Act of 2023

This bill requires the Small Business Administration (SBA) to carry out an initiative to expand the availability of 7(a) loans to small businesses that are located in low- or moderate-income neighborhoods. (Under the 7(a) Program, the SBA provides business loans and loan guaranties to small business borrowers unable to obtain financing elsewhere.)

The SBA must expand authorization for providing 7(a) loans to lenders that meet the criteria to make such loans but have not otherwise been approved to do so. Such lenders must ensure that at least 50% of loans they make that are guaranteed pursuant to the bill are made to small businesses in low- or moderate-income neighborhoods.

Bill 118 s 1369, also known as the Fair Access to Small Business Lending Act of 2023, aims to address the issue of small businesses struggling to access affordable credit. The bill seeks to promote fair and equal access to credit for small businesses by requiring financial institutions to provide transparent and non-discriminatory lending practices.

Under this legislation, financial institutions would be prohibited from denying credit to small businesses based on factors such as race, gender, or geographic location. The bill also includes provisions to ensure that small businesses have access to information about the terms and conditions of loans, as well as the ability to compare different lending options.

Additionally, the Fair Access to Small Business Lending Act of 2023 would establish a Small Business Lending Advisory Board to provide guidance and recommendations to financial institutions on best practices for small business lending. This board would be composed of representatives from small businesses, financial institutions, and government agencies. Overall, this bill aims to level the playing field for small businesses seeking access to credit, and promote economic growth and job creation in communities across the United States.
Congress
118
Number
S - 1369
Introduced on
2023-04-27
# Amendments
0
Sponsors
+5

Variations and Revisions

4/27/2023
Text
PDF
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Status of Legislation

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

Purpose and Summary

Fair Access to Small Business Lending Act of 2023

This bill requires the Small Business Administration (SBA) to carry out an initiative to expand the availability of 7(a) loans to small businesses that are located in low- or moderate-income neighborhoods. (Under the 7(a) Program, the SBA provides business loans and loan guaranties to small business borrowers unable to obtain financing elsewhere.)

The SBA must expand authorization for providing 7(a) loans to lenders that meet the criteria to make such loans but have not otherwise been approved to do so. Such lenders must ensure that at least 50% of loans they make that are guaranteed pursuant to the bill are made to small businesses in low- or moderate-income neighborhoods.

Bill 118 s 1369, also known as the Fair Access to Small Business Lending Act of 2023, aims to address the issue of small businesses struggling to access affordable credit. The bill seeks to promote fair and equal access to credit for small businesses by requiring financial institutions to provide transparent and non-discriminatory lending practices.

Under this legislation, financial institutions would be prohibited from denying credit to small businesses based on factors such as race, gender, or geographic location. The bill also includes provisions to ensure that small businesses have access to information about the terms and conditions of loans, as well as the ability to compare different lending options.

Additionally, the Fair Access to Small Business Lending Act of 2023 would establish a Small Business Lending Advisory Board to provide guidance and recommendations to financial institutions on best practices for small business lending. This board would be composed of representatives from small businesses, financial institutions, and government agencies. Overall, this bill aims to level the playing field for small businesses seeking access to credit, and promote economic growth and job creation in communities across the United States.
Alternative Names
Official Title as IntroducedA bill to expand access to capital in underserved markets by providing resources for the Small Business Administration to approve additional Non-Federally Regulated Lenders to make business loans guaranteed by the Small Business Administration to small business concerns in low-income and moderate-income neighborhoods.
Policy Areas
Commerce

Comments

Recent Activity

Latest Summary10/16/2023

Fair Access to Small Business Lending Act of 2023

This bill requires the Small Business Administration (SBA) to carry out an initiative to expand the availability of 7(a) loans to small businesses that are located in low- or ...

Latest Action4/27/2023
Read twice and referred to the Committee on Small Business and Entrepreneurship.