WASHINGTON– Senator John Hickenlooper and Senator Tim Scott introduced the Expanding Access to Credit for Small Business Act, an act that would aid small businesses including financial technology businesses in the process of obtaining loans.
This act comes in the wake of the global COVID-19 pandemic which significantly impacted small businesses across America, making it hard to access the Paycheck Protection Program and other critical financial services.
Senator Hickenlooper said, “Our bipartisan bill will modernize the SBA’s primary loan program to help underserved small businesses grow and thrive. You shouldn’t need a big bank to get an SBA loan.”
Senator Scott said that the act is just one step in the process of making sure small businesses owned by minority and rural entrepreneurs get “just as much access to the American Dream as anyone else”.
The bill would lift the Small Business Lending Company moratorium and the following:
- Remove the moratorium on new SBLC licenses;
- Re-appropriate unused COVID funds from various stimulus bills to be used by the SBA to provide oversight of the new SBLCs;
- Include reporting requirements to gauge the success of the program;
- Include a rule of construction that would prohibit the SBA administrator from becoming the primary regulator of fintech companies; and
- Require the administrator to check for financial soundness and compliance when considering new applicants to the program.