TThree bills that can provide great help to small businesses have passed Congress. Do you know what they all have in common? Signs of a welcome sign of bipartisan support for SMEs.
Initially 504221 Modernization and Small Manufacturer Enhancement ActThe bill, which passed the House of Representatives in mid-April and is awaiting Senate voting, aims to make the Small Business Administration (SBA) 504 loan program more accessible to manufacturers. Certified development company (CDC) Mediator. Manufacturers can apply for $ 6.5 million if they can show that the money is being used for energy efficiency or helping to revitalize the affected areas. .. The bill requires small manufacturers to increase the amount of financing available, relax collateral requirements, and provide training to the SBA.
Why is this bill so important? We are allocating capital to manufacturers and leveraging underutilized CDCs. “Too many people aren’t familiar with institutions like accredited development companies,” said Charis David, the co-sponsor of the bill. “But they have a very good track record of servicing and supporting small businesses that do not have or lack bank accounts.”
next Opportunity Zone Expansion MethodThe bill, sponsored by Republican representative Tim Burchett, was submitted to the House of Representatives in February and is awaiting voting. This includes elections and capital gains postponement periods in eligible opportunity zones (defined as economically deprived communities where private investment may be eligible for capital gains tax incentives under certain conditions). It will be extended for 2 years.
The bill encourages investment in SMEs in areas that need it most. “If people don’t invest, their assets will be devastated,” says Burchett. “But with investment, we can create jobs and have more encouragement for more investment. I think it’s a victorious opportunity for our countryside America and our urban America.”
At the end, 2021 Microloan Transparency and Accountability ActPassed by the House of Representatives in September 2020 and reintroduced this year, the bill provides 5% technical assistance to specific lending brokers, including those that provide 25% of loans to local SMEs. Set a grant.
“It really helps to ensure that the Small Business Administration (SBA) provides local small businesses with access to microloans,” says Burchett, who sponsors the bill. “I don’t feel that people should be overlooked because of their location, or their skin color or the area in which they grew up.”
The bill also requires the SBA to report specific indicators related to microloan payments to SMEs.
Yes, all of these bills help SMEs, especially SMEs, low-income to low-income region businesses, and local businesses get more money from the federal government. But there’s something bigger in common with these bills: they’re very, very bipartisan.
For example, the 2021 504 Modernization and Small Manufacturer Enhancement Act is co-sponsored by five Republicans (including Berchet) and three Democrats. The Opportunity Zone Expansion Act has been signed by nine Republicans and two Democrats. The 2021 Microloan Transparency and Accountability Act involves three Republicans and two Democrats.
Unfortunately, these bills aren’t headlined and haven’t caught the attention of the media. But for many small business owners, their passage can mean the difference between growth and stagnation, survival or demise.
So yes, the political struggle is a juicy story. But behind the scenes, there are some issues that both parties can agree on, one of which is to support SMEs.
Three bills show that Congress can offer SMEs despite the split | US SMEs
Source link Three bills show that Congress can offer SMEs despite the split | US SMEs