Reconciliation: SBA Aid & InvestmentSeptember 15, 2021
On September 9, the House Small Business Committee approved $25 billion in small-business aid over the next decade in its portion of the $3.5 trillion tax and spending legislation.
The committee’s proposal includes provisions to invest in solutions to fundamental concerns for small businesses. The legislation includes the following investments to programs ran by the Small Business Administration (SBA):
- $35 million in funding for veteran federal procurement entrepreneurship training;
- $1 billion in funding for an uplift accelerator program and business development academy at Historically Black Colleges and Universities (HBCUs) and Minority Serving Institutions (MSIs) for underrepresented small businesses;
- Provides $1 billion to establish a national network of business incubators;
- $20 million to enhance the SBA’s Office of Native American Affairs;
- $9.5 billion to establish a subprogram within the Small Business Investment Company program to provide patient capital to underserved markets and small manufacturers;
- $600 million to enhance, improve, and expand the SBA’s Community Advantage program;
- $4.465 billion to fund a direct loan product under the current 7(a) lending program administered by the SBA;
- $500 million to fund a pilot program for eligible cooperatives and employee-owned businesses to receive SBA loan products without the requirement of a personal or entity guarantee;
- Invests $2.746 billion to establish a direct lending subprogram under the 504/CDC lending program to allow CDCs to make loans to small contractors, small manufacturers, and small businesses in underrepresented markets;
- Over $100 million to invest in entrepreneurial training initiatives for the formerly incarcerated.
Click here for a section-by-section summary of the proposal.
The proposed investments will increase access to capital, foster entrepreneurial development, expand federal procurement opportunities, and drive innovation in the small business sector.