[Congressional Record Volume 167, Number 65 (Thursday, April 15, 2021)]
[Extensions of Remarks]
[Page E405]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





                   MICROLOAN IMPROVEMENT ACT OF 2021

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                       Wednesday, April 14, 2021

  Ms. JACKSON LEE. Madam Speaker, I rise in support of H.R. 1502--the 
``Microloan Improvement Act of 2021,'' revises the microloan program 
managed by the Small Business Administration (SBA) to provide certain 
financial assistance to small businesses through designated 
intermediaries.
  Specifically, the bill authorizes an intermediary to offer a line of 
credit to a small business, and it increases the average amount for 
loans from an intermediary to participating small businesses that makes 
the intermediary eligible for a reduced interest rate on SBA loans.
  The bill also places limits on the repayment term for a microloan, 
and it prohibits the SBA from imposing any additional limitation on the 
term for repayment of a microloan.
  Further, the SBA must:
  reserve 15 percent of new loan funds that are made available for 
disbursement as microloans to designated underutilized states and make 
the remaining 85 percent available for any state;
  establish a process for an intermediary to provide the major credit 
reporting agencies with information about a borrower that is relevant 
to credit reporting, and
  include information regarding equitable distribution of loan funds in 
its annual report.
  The SBA Microloan program approves up to $50,000 to small businesses 
to provide businesses with working capital, or to purchase inventory, 
supplies, and equipment.
  Loans for $50,000 may not seem like a lot to a small business, but 
the micro small businesses that fill our neighborhoods would benefit 
from having access to these funds.
  A micro enterprise employs nine people or fewer, and this is the most 
common kind of private-sector business in the United States.
  Small business statistics show that while this might be the most 
common kind of enterprise, its share of employees is very small, 
providing only 10.5 percent of all private-sector jobs.
  The fortunes of micro businesses during COVID-19 has been fraught 
with risks.
  We know that:
  82 percent of businesses that fail do so because of cash flow 
problems;
  Small businesses employ 59 million people in the U.S.A;
  50 percent of all small businesses are operated from home;
  84 percent of small business owners indicate that they're feeling 
optimistic about the future of their companies;
  64 percent of small business owners begin with only $10,000 in 
capital;
  Approximately a quarter of small businesses begin with no financing 
whatsoever;
  Only 40 percent of small businesses are profitable; and
  Only 64 percent of small businesses have their own website.
  Thousands of minority-owned small businesses were shown to be at the 
end of the line in applying to the government's Paycheck Protection 
Program (PPP).
  According to an Associated Press analysis of the low-interest 
government loans, minority owners struggled more than white owners to 
find banks that would accept their applications; or otherwise were 
disadvantaged by the terms of the program.
  Data from the Paycheck Protection Program released December 1 and 
analyzed by the Associated Press show that many minority owners 
desperate for a relief loan did not receive one until the PPP's last 
few weeks, while many more white business owners were able to get loans 
earlier in the program.
  The program, which began April 3 and ended August 8 and handed out 
5.2 million loans worth $525 billion, helped many businesses stay on 
their feet during a period when government measures to control the 
coronavirus forced many to shut down or operate at a diminished 
capacity.
  The PPP program struggled to meet its promise of aiding communities 
that historically have not gotten the help they needed.
  The PPP program was especially difficult to access for micro 
businesses.
  A micro business employs nine people or fewer, and this is the most 
common kind of private-sector business in the U.S. Small business 
statistics show that while this might be the most common kind of 
enterprise, its share of employees is very small, providing only 10.5 
percent of all private-sector jobs.
  As the economy continues to recover, we should not forget that not 
all businesses will recover at the same rate, just as all workers are 
not heading back into the workforce with the same opportunities to find 
or resume employment.
  I ask my colleagues to join me in supporting this bill that will 
provide much needed financial support to our mom and pop businesses.

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