Fischer Introduces Bill to Help Struggling Americans Start Their Own Businesses

Press Release

Senate Small Business Committee member Senator Deb Fischer (R-Neb.) introduced a new bill this afternoon that would improve the Small Business Administration's microloan program. The Microloan Act of 2015 helps America's entrepreneurs with limited resources by increasing flexibility and creating more opportunities for them to start their own businesses. Access to capital is a major challenge for startups and small businesses, which are often denied loans by larger investors.

Senator Fischer released the following statement regarding the legislation:

"Without access to capital, too many Americans with limited resources are unable to build and grow successful small businesses. That is why I am proud to introduce a new bill to help improve an existing microloan program and create new opportunities for innovators to pursue the American dream. This common-sense bill will provide ambitious creators with the tools they need to start their own businesses, escape poverty, create jobs, and strengthen our families and communities."

The Rural Enterprise Assistance Project (REAP), which is a program of the Center for Rural Affairs, Community Development Resources, and the Nebraska Small Business Collaborative applauded Fischer's bill, stating:

"The Microloan Act of 2015 makes productive changes to the Small Business Administration Microloan Program and eliminates three provisions that had been in the statute since its inception and are no longer appropriate. We appreciate Senator Fischer's hard work on this and look forward to continuing our work with her on expanding opportunities for Nebraska's small businesses."

Established in 1992 as a Small Business Administration (SBA) pilot program, the microloan program has loaned over $55 million to nearly 4,000 small businesses across America. While the program has grown in size, scope, and success, many of the original provisions of the pilot program remain in effect today. These provisions have caused burdensome paperwork for both intermediaries and the SBA. Fischer's Microloan Act of 2015 proposes changes that would eliminate three provisions that are no longer appropriate:

1. Eliminate restrictions on the use of microloan technical assistance grants. This would give intermediaries more flexibility to design support services and address the needs of their specific borrowers. It would also help borrowers to plan and prepare for the loans they receive.

2. Eliminate minimum state allocation formulas to ensure that funds are distributed more effectively.

3. Eliminate limits regarding the number of technical grants that can be used for contracts with third parties. Striking this provision would help organizations that lack funding to hire full time staff. Through more time and less bureaucracy, these organizations can better fulfill their grant obligations with consultants.

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