Congressmen Kim, Burchett, Introduce Bipartisan Small Business Package
Congressmen Kim, Burchett, Introduce
Bipartisan Small Business Package
WASHINGTON, DC – Today, Congressman Andy Kim (NJ-03) and Congressman Tim Burchett (TN-02) introduced the Bipartisan “Microloan, Major Impact” Package; two bills that would increase the size of, and ease of obtaining, Microloans through the Small Business Administration (SBA).
“I’ve heard from so many business leaders across Burlington and Ocean Counties about the need to improve access to capital, and the major impact Microloans have had in starting their businesses,” said Congressman Kim. “This legislative package is aimed at making these Microloans available to more aspiring entrepreneurs and making it easier for our small business owners to pay back these loans. I want to thank Congressman Burchett for being a partner on this effort, and I look forward to working with my colleagues to get these bills passed.”
“Small businesses in East Tennessee and across the country deserve equal access to Small Business Administration resources, including the Microloan Program,” said Congressman Burchett. “It is important Congress removes the barriers preventing small businesses from receiving microloans and ensures proper transparency of how taxpayer dollars are being used at the SBA. And that is exactly what Congressman Kim and I are looking to achieve through both of these bills.”
The “Microloan, Major Impact” Package consists of two bills: the Microloan Improvement Act, H.R. 6079, introduced by Congressman Kim, and the Microloan Transparency and Accountability Act, H.R. 6078, introduced by Congressman Burchett.
The Microloan Improvement Act would increase the number of nonprofit, community-based lenders eligible for the lowest interest rate on loans from the SBA and allow these lenders to offer lines of credit to small businesses, while extending the maximum repayment term for loans. This would help cut through bureaucratic red tape identified as restricting lending to small businesses looking to grow and create jobs.
The Microloan Transparency and Accountability Act would enhance microloans in rural areas and provide new reporting to Congress to ensure that the program is best serving America’s small business owners.
The Microloan Program in the SBA was created by Congress in 1991 to make funds available to community-based lenders, who in turn make loans to eligible borrowers. Many of these borrowers are underserved entrepreneurs who may not have a credit history or significant business experience.
Congressman Kim and Congressman Burchett are both members of the House Committee on Small Business. Congressman Kim is the Chairman of the Subcommittee on Economic Growth, Tax and Capital Access.