Reps. Burchett, Kim reintroduce Microloan Transparency and Accountability Act

KNOXVILLE, Tenn. (Jan. 24, 2023) – U.S. Representative Tim Burchett (TN-02) reintroduced the Microloan Transparency and Accountability Act alongside U.S. Representative Andy Kim (NJ-03). This bipartisan legislation passed the House of Representatives during the 116th and 117th Congress. 

Small businesses in rural areas currently have a low rate of participation in the Small Business Administration’s (SBA) Microloan Program. The Microloan Transparency and Accountability Act would incentivize engagement with rural businesses by offering a 5% technical assistance grant for microloan intermediaries that make at least 25% of their loans to rural small businesses.  

This bill would also improve transparency within the Microloan Program by requiring the SBA to provide Congress with a Portfolio Risk Analysis of microloans on an annual basis. This will help prevent fraud and government waste within the program and ensure SBA resources are directed toward rural communities, not just metropolitan areas. 

“I was a small business owner, so I know first-hand how important accessible financial resources are for small businesses to grow and succeed,” said Rep. Burchett. “East Tennessee is home to many rural counties with mom-and-pop shops, and I’m proud to reintroduce this bill to help these rural businesses gain access to valuable resources that can help them grow and reach their goals.”  

“I’ve heard from small businesses all over New Jersey that they need help and a better system that supports their needs so they can continue to grow and serve our communities,” said Rep. Kim. “This bill is aimed at making sure microloans are going to the small businesses that need them the most. Additionally our bill would ensure Congress is able to hold the Small Business Administration accountable for meeting the needs of small businesses across the country. I'm proud to work in a bipartisan way with Congressman Burchett and hope our colleagues on both sides of the aisle support this bill to improve support for American small businesses.” 

The full text of the Microloan Transparency and Accountability Act is available here.