Microloan Transparency and Accountability 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. 1487) to amend the Small Business Act to increase transparency, 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. 1487, the Microloan Transparency and Accountability Act, which will improve SBA's data reporting with respect to the microloan program.

Specifically, the bill would have SBA and microlenders report on the number, amount, and percentage of microloans that went into default in the previous year; the extent to which microloans are provided to small businesses in rural areas; and the average size, interest rate, and amount of fees charged for each microloan.

These metrics will help Congress and the public better evaluate the program and its impact on underserved communities and make improvements as needed.

This program is vital in helping women and minorities obtain much- needed capital. In fiscal year 2020, 47 percent of microloans were made to women-owned small businesses, and more than 51 percent of microloans were made to minority-owned small businesses.

This language was approved unanimously last Congress by both the Small Business Committee and the full House, and I look forward to a similar vote here today.

The version of the bill from last Congress also included a provision that would increase the amount of technical assistance grant funding a rural-serving microlender would receive. I am pleased that language was included as part of the Economic Aid Act and is now law.

However, our work on the microloan program is not done. H.R. 1487 continues the work to keep strengthening the program, and I encourage all of my colleagues to support it.

I applaud the bipartisanship shown by the sponsors of these bills, especially the leads, Mr. Burchett and Mr. Kim.

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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.

It is often said that information is power. H.R. 1487 will greatly increase the information publicly available about the microloan program's performance and impact.

If we intend to continue to support the smallest of small businesses, we need to make sure the programs targeting them are operating at their best. That starts with improving the data and information available about where the loans are going, how affordable they are, and where the gaps in coverage are.

With more data, the public can assess the impact these loans have in our communities, and Congress will be able to monitor the program and identify areas for improvement.

I thank the gentlemen from Tennessee and New Jersey for their hard work and collaboration in bringing this bill to the floor today.

I urge my colleagues to vote "yes,'' and I yield back the balance of my time.

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