WASHINGTON – Rep. Nydia M. Velázquez (D-NY), Ranking Member of the House Small Business Committee, has introduced multiple pieces of legislation to address key issues facing small businesses, including improving vital Small Business Administration (SBA) capital access programs, facilitating employee ownership of small businesses, and expanding access to SBA disaster loans.
“Under the Biden administration, we experienced a small business boom with record rates of small business startups and job creation,” said Ranking Member Velázquez. “During the 119th Congress, it will be vital that the Small Business Committee work to build on this momentum and pass legislation to address the issues that small business owners really care about. Many of these bills have bipartisan track records and all of them would help American entrepreneurs across the country.”
Ranking Member Velázquez introduced the following bills:
504 Credit Risk Management Improvement Act of 2024:
The bill shifts loan closing file review responsibilities to the Office of Credit Risk Management (OCRM) and allows SBA to charge CDCs a fee to cover the cost of oversight, which becomes effective one year after enactment. The bill also clarifies OCRM’s duties, as well as the enforcement actions OCRM may take against a CDC, which are aligned with those enacted under the 2018 7(a) Oversight Act. The bill also includes penalties for CDCs who submit required annual reports to SBA more than 30 days late. The bill also directs SBA to issue rules for CDC compliance with the National Environmental Policy Act of 1969.
504 Modernization and Small Manufacturer Enhancement Act of 2024:
This legislation increases the maximum loan amount for manufacturing loans from $5.5 million to $6.5 million and requires SBA District Offices to partner with SBA Resource Partners to provide entrepreneurial development assistance to small manufacturers. The bill also provides decreased project costs for small manufacturers and increases the job creation/retention requirements for small manufacturers.
504 Program Level Flexibility Act:
The bill would allow the Administrator of the Small Business Administration the authority to increase the amount of commitments to qualified State or local development companies.
Disaster Loan Equity for Territories Act of 2024:
The bill would establish requirements relating to the submission of tax returns or tax return transcripts for disaster loans in order to facilitate increased access to SBA disaster relief for victims of natural disasters in US territories.
Improving SBA Engagement on Employee Ownership Act:
The legislation would improve SBA’s outreach and engagement on employee ownership and cooperative development by requiring the administrator to attend meetings and working groups on cooperatives and employee ownership hosted by the federal government. The bill also requires the administrator to establish a small business employee ownership and cooperatives promotion program to offer technical assistance and training on the transition to employee ownership through cooperatives and qualified employee trusts.
Main Street Employee Ownership 2.0 Act of 2024:
The legislation prohibits SBA from requiring cooperatives to provide a personal or entity guarantee for a 7(a) loan, and from requiring the seller of a business being purchased with a 7(a) loan for conversion to employee ownership to provide a seller guarantee for the loan. The legislation also requires SBA to permit 7(a) lenders in the Preferred Lenders Program to process 7(a) loans to ESOPs using their delegated authority.
Microloan Improvement Act of 2024:
This bill makes it easier for lenders to provide affordable microloans and technical assistance to entrepreneurs. It takes steps to lower interest rates, extend repayment terms, and eliminate the 1/55 rule.
