Rep. Schiff Introduces Bill to Secure Funding for Small Business Administration Programs During Government Shutdowns
Washington, D.C.— Today, Representative Adam Schiff (D-Calif.) introduced the Funding Small Businesses During Shutdown Act, a bill that will guarantee essential Small Business Administration (SBA) programs will continue to receive funding and ensure that small businesses can still access necessary financial support.
“Small businesses should not have to bear the brunt of House Republican Leadership's inability to fund the government and keep critical agencies like the Small Business Administration up and running. My bill will ensure that, regardless of a shutdown, the support mechanisms for small businesses will remain active and accessible,” said Rep. Schiff. “SBA programs are crucial to families all across America and supporting them strengthens our economy and communities.”
Specifically the bill would ensure that the following programs remain funded during a shutdown:
- 7(a) Loan Program: The SBA's primary business loan program which offers loan guarantees to lenders. This enables them to provide financial assistance to small businesses with specific needs. The uses for these loans include:
- Acquiring, refinancing, or improving real estate and buildings
- Providing short- and long-term working capital
- Refinancing existing business debt
- Purchasing and installing machinery, equipment, furniture, fixtures, and supplies
- Facilitating changes in business ownership, whether complete or partial
- Offering multi-purpose loans for any combination of the above needs
- 504 Loan Program: Offers long-term, fixed-rate financing for major fixed assets that contribute to business growth and job creation. This program is tailored for:
- The acquisition or improvement of land, buildings, and other major fixed assets
- Projects aimed at promoting business expansion and creating jobs
- Microloan Program: Provides funding to specially designated intermediary lenders, which are nonprofit, community-based organizations with expertise in lending and providing management and technical assistance. These intermediaries manage the Microloan program to support eligible borrowers, including:
- Small businesses and certain not-for-profit childcare centers
- Entrepreneurs requiring small-scale financing for a variety of business-related purposes
This legislation is supported by the National Veteran Business Development Council and National Small Business Development Center.
This legislation is cosponsored by Representatives Shri Thanedar (D-Mich.), Valerie Foushee (D-N.C.) and Joaquin Castro (D-Texas).
To read the full bill text, click HERE.
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