Microloan Improvement Act of 2021

Floor Speech

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Ms. CRAIG. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1502) to amend the Small Business Act to optimize the operations of the microloan program, lower costs for small business concerns and intermediary participants in the program, and for other purposes.

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Ms. CRAIG. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in support of the bill before us today, H.R. 1502, the Microloan Improvement Act of 2021.

Today, we are considering four bipartisan bills that were approved by the Small Business Committee and the full House of Representatives last year. I am proud of the committee's work on behalf of small businesses and pleased that we worked together to get things done. Our small businesses deserve nothing less.

I would like to thank the chairwoman, Ms. Velazquez, for giving me the opportunity to manage time today on these four important small business bills.

I would also like to thank the ranking member, Mr. Luetkemeyer, who will be handling the floor proceedings today with me.

Prior to the COVID-19 pandemic, the Subcommittee on Economic Growth, Tax, and Capital Access, under the leadership of Mr. Kim, held a hearing on the microloan program, where we heard from a panel of intermediaries who reported that many of the program's rules, largely unchanged since 1991, are outdated and restrict them from meeting today's demand for start-up financing and providing more technical assistance.

In response, Mr. Kim crafted the Microloan Improvement Act of 2020, a series of proposals designed to update the program's rules and, ultimately, help microloan intermediaries extend more affordable capital to first-time entrepreneurs.

I was proud to support the Microloan Improvement Act last Congress and was pleased to see some of its provisions become law as part of the Economic Aid Act last December.

Today's bill, the Microloan Improvement Act of 2021, is virtually the same as last Congress' version without the policies we have already enacted into law.

Madam Speaker, we have heard time and again many entrepreneurs lack the experience needed to demonstrate their creditworthiness to conventional lenders. The COVID-19 pandemic has highlighted these gaps in financing, showing the smallest of small businesses, especially those owned by women and minorities, struggle the most to afford access to capital.

The microloan program is uniquely suited to address this problem, and today's bill strengthens the program and is long overdue.

I encourage my colleagues to support the bill.

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Ms. CRAIG. Madam Speaker, I yield such time as she may consume to the gentlewoman from Illinois (Ms. Newman).

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Ms. CRAIG. Madam Speaker, I have no further speakers and I am prepared to close.

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Ms. CRAIG. Madam Speaker, I yield myself the balance of my time.

As the small business economy starts to recover from the COVID-19 pandemic, entrepreneurs will need as many affordable capital options as possible. That is why the Economic Aid Act included PPP updates, grants for hard-hit venues, and other enhancements to SBA's business loan programs, including the microloan program.

Today's bill takes the next step after that relief effort toward fully modernizing and optimizing SBA's microloan program. For nearly 30 years, this program has had a strong track record of success and has helped to launch many successful small businesses, especially those owned by women and minority entrepreneurs. The record is full of success stories as the program has grown from a simple pilot program to a vital lending tool with strong stakeholder and congressional support.

The legislation before us today renews our commitment to startups by easing access to the program for even more aspiring entrepreneurs and making the program nimbler for intermediaries and borrowers alike.

Passing this bill will be another step to help lead our Nation out of this pandemic and build back the economy by embracing America's entrepreneurial spirit.

I applaud the work by Mr. Kim and Mr. Garbarino for their bipartisan work on the microloan program. I encourage all of my colleagues to vote ``yes,'' and I yield back the balance of my time.

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