Policy News – April 20, 2023

Following a two-week Easter Recess, the United States Congress has returned to Washington to continue the first session of the 118th Congress. Here’s what has been happening on the Hill and in the states this week.

At the Agencies

SBA Releases Rulemaking Impacting Small Business Loan Programs

The Small Business Administration recently released two final rules impacting small business lending programs. The SBA released a final rule outlining Affiliation and Lending Criteria for the SBA Business Loan Programs, taking effect May 11, 2023. The SBA also released a final rule regarding the Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization which takes effect May 12, 2023. View the SBA’s official statement here, and the statement from the Senate Committee on Small Business and Entrepreneurship here.

Consumer Financial Protection Bureau Resources On Small Business Lending Data

The CFPB recently issued a final rule to implement section 1071 of the Dodd-Frank Act. The rule would create requirements around small business lending data for entities overseeing small business loans. For the final rule, click here. For the CFPB fact sheet, click here. For the executive summary, click here. For an enforcement policy statement for covered entities, click here.

In the House

The Committee on Small Business held a hearing titled “Paying Their Fair Share: How Tax Hikes Crush the Competitiveness of Small Businesses.”

The Committee on Small Business held a hearing  titled “Office of Inspector General Reports to Congress on Investigations of SBA Programs.”

Bills of Interest

Rep.  Susie Lee (NV-3) introduced a bill to allow nonprofit child care providers to participate in certain loan programs of the Small Business Administration, and for other purposes.

Rep. Joaquin Castro (TX-20) introduced a bill to expand opportunities for diverse entrepreneurs.

Sen. John Boozman (AR) introduced a bill to amend the Equal Credit Opportunity Act to modify the requirements associated with small business loan data collection, and for other purposes.

Sen. John Hickenlooper (CO) introduced a bill to establish a MicroCap small business investment company designation and for other purposes.

Sen. John Hickenlooper (CO) introduced a bill to target programs of the Administration relating to entrepreneurial development, contracting, and capital access to revitalize Native businesses and economic development in Indian country.

Sen. Joni Ernst (IA) introduced the SBA Collections Act of 2023.

In the States

12 states are out of session. Maine is in special session

California: A bill was introduced in California that would prohibit a provider or broker from charging specified small business fees. 

Florida: The Florida legislature is deliberating over a proposal that would allow interest rates up to 36% on consumer finance loans. Some lawmakers are opposing the bill, saying that it could cause low-income residents to turn to online lenders instead of consumer-finance businesses.