Reps. Crow, Donalds Introduce Bipartisan Bill to Help Small Businesses Access the Resources They Need

Representatives Jason Crow (D-CO-06) and Byron Donalds (R-FL-19), both members of the House Small Business Committee, introduced the Expanding Access to Credit for Small Business Act. This bipartisan bill will broaden the Small Business Administration's (SBA) 7(a) small business loan program so it allows financial technology, or fintech, lenders to offer loans to small businesses.

At the height of the coronavirus pandemic, millions of rural and minority small business owners did not have access to banks, which made it difficult for them to access the Paycheck Protection Program (PPP) and other financial services. The Expanding Access to Credit for Small Business Act will allow fintech companies, many of which helped fill that gap, to also participate in the 7(a) program so they can provide our small businesses with the resources they need.

"Small businesses are the backbone of the U.S. economy. A big part of our work on the Small Business Committee is ensuring that our small business owners have the resources they need to succeed," said Rep. Crow. "It's my pleasure to work on a bipartisan basis with Congressman Donalds to expand the 7(a) small business loan program to ensure funding for our new and growing small businesses."

"Fintech lending is the future of small business lending, and this legislation modernizes how small businesses access capital. Empowering and equipping the fintech sector of the economy to offer private loans creates more opportunities for American small enterprises to achieve prosperity," said Rep. Donalds. "This is commonsense, bipartisan legislation deploys a willing and ready private sector to meet the needs of our nation's small businesses in a sustainable way and creates a pathway for entrepreneurs to pursue their American Dream."

US Senators John Hickenlooper (D-CO) and Tim Scott (R-SC) are co-leading the bill in the Senate.

Specifically, the bill:

• Removes the moratorium on new SBLC licenses;
• Re-appropriates unused COVID funds from various stimulus bills to be used by the SBA to provide oversight of the new SBLCs;
• Includes reporting requirements to gauge the success of the program;
• Includes a rule of construction that would prohibit the SBA administrator from becoming the primary regulator of fintech companies; and
• Requires the administrator to check for financial soundness and compliance when considering new applicants to the program.

The bill text can be read in its entirety here.