Improving SBA Management, Programs, Resources, and Oversight for Entrepreneurs
This act aims to enhance oversight and improve programs of the Small Business Administration (SBA). It introduces changes to how loans are provided, especially for disaster relief, and strengthens control over fund allocation. The goal is to ensure greater transparency and effectiveness of support for small businesses.
Key points
End of Direct SBA Lending: The SBA will no longer provide direct loans, instead focusing on guaranteeing loans made by banks and other financial institutions. This means entrepreneurs will apply for loans through banks, with SBA providing guarantees.
Disaster Lending Improvements: Changes aim to streamline the disaster loan process, increasing control over fund usage and preventing fraud. New rules for identity verification and preventing duplicate applications are introduced.
Increased Oversight and Transparency: The act requires the SBA to regularly report to Congress on program effectiveness and implementation of audit recommendations, enhancing accountability and transparency.
Support for Businesses Affected by Disruptions: SBA counseling programs will offer assistance to businesses impacted by supply chain issues, labor shortages, and cyberattacks.
Funding Restrictions: SBA funds cannot be used by lobbying entities, think tanks, China-linked organizations, labor unions, Planned Parenthood, or individuals convicted of riot-related felonies or assault on law enforcement. Loan proceeds cannot be used for commercial or federal debt repayment.
Expired
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