Reps. Burchett, Kim introduce bill aimed at boosting use of small business microloans in rural areas
WASHINGTON (March 4, 2020) -- Today, Congressman Tim Burchett (TN-02) and Congressman Andy Kim (NJ-03) introduced H.R. 6078, the Microloan Transparency and Accountability Act of 2020.
The Microloan Program is a resource offered by the Small Business Administration (SBA) to low-dollar borrowers. Microloans are granted to an intermediary that then approves or denies the microloan to small business owners. However, the use of these microloans is low in rural areas.
H.R. 6078 seeks to establish a 5% technical assistance grant for intermediaries who make 25% of their loans to rural small businesses. The bill would also increase transparency and accountability in the SBA Microloan Program by requiring the SBA to provide Congress with a Portfolio Risk Analysis on an annual basis.
Rep. Burchett believes the steps taken in this legislation will grow rural small business participation in the SBA Microloan Program.
“Rural small businesses in East Tennessee and across the country deserve access to resources offered by the SBA,” said Rep. Burchett. “Small businesses should not be prevented from receiving a microloan just because they are located away from an urban center. This legislation would incentivize microloan intermediaries to involve rural small businesses in the Microloan Program while also improving transparency on how taxpayer dollars are being spent at the 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.”