Congressional Advocacy
118th Congress
House and Senate Small Business Committee Rosters
In April 2023, The Small Business Administration released its final rule for the Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization proposal. The changes will take effect on May 12, 2023 and are very similar to the proposed rule released in November 2022.
Several hearings were held later that month by the House and Senate Small Business Committees to examine the Small Business Administration's proposed rule to rescind the SBLC Moratorium, and SBA leadership was invited to provide additional insight into the Administration's goals. The committee leadership also invited practitioners to testify before Congress and address outstanding questions about the proposed rule's impact on SBA loan programs. Hilda Kennedy of AmPac and MLWG member, testified to the impact the proposed rule could have on the Community Advantage program and lenders.
House and Senate Hearings of Interest
117th Congress
Senator Ben Cardin (D-MD), and Representative Judy Chu (D-CA), introduced bicameral legislation entitled The Community Advantage Loan Program Permanency Act of 2022 (H.R. 9311/S. 5102), The MLWG commends Senator Cardin and Representative Chu for exemplifying true leadership and commitment to small businesses. Read the MLWG's full statement of support here and the bill sponsors' joint press release here.
Provisions included in the Build Back Better Act legislation sought to codify the U.S. SBA's Community Advantage pilot program into a full authorized program as part of the Small Business Act. The Build Back Better Act legislation was passed by the House but not taken up by the Senate. Ultimately continued negotiations amongst Senate leadership resulted in the proposed $739 billion Inflation Reduction Act of 2022.
The U.S. Small Business Administration released a Notice of Proposed Rulemaking (NPRM) titled, 'Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization,' to lift the 40-year moratorium on Small Business Lending Company (SBLC) licenses. MLWG member, Robert Villareal with Momentus Capital / CDC Small Business Finance, testified on behalf the MLWG during a Senate Small Business hearing, titled, 'Improving Access to Capital in Underserved Communities: The Community Advantage Program, Microloans, and other SBA Initiatives,' to discuss the potential impact of the SBA's proposed rule on the Community Advantage program.
House and Senate Hearings of Interest
116th Congress
During the 116th Congress, Senator Cardin (D-MD), as well as Representative Chu (D-CA-27) and Representative Spano (R-FL-15) introduced legislation (S.2361, H.R.7903) to authorize the Community Advantage (CA) program. Achieving CA program authorization is an essential step towards ensuring that the most underserved small businesses receive the capital they need to grow and thrive. The House and Senate bills sought to expand the definition of underserved target markets to include businesses owned by women and people of color.
On July 31st 2020, the MLWG submitted an endorsement letter for H.R.7903 to Rep. Chu and Rep. Spano. The MLWG also created a section-by-section summary of H.R.7903.