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Entrepreneur Support: New Rules for Referrals to Resource Partners

New regulations require financial institutions that deny loans to small businesses to refer them to organizations that support entrepreneurs. This aims to help individuals who do not qualify for traditional loans find other forms of assistance and advice, increasing their chances of growth. The act seeks to facilitate access to resources for startups and growing businesses.
Key points
Banks and lending companies must now inform rejected loan applicants about available business support organizations, providing their contact details and service descriptions.
This applies to various types of small business loans, including development loans, disaster assistance, and microloans.
Financial institutions will be required to submit annual reports on these referrals, and the government will analyze their effectiveness and publish results to assess whether assistance reaches those in need.
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Additional Information
Print number: 117_HR_7971
Sponsor: Rep. Sánchez, Linda T. [D-CA-38]
Process start date: 2022-06-07
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SEED Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_7971.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-06-07.

What are the main provisions?

Key points include:

  • Banks and lending companies must now inform rejected loan applicants about available business support organizations, providing their contact details and service descriptions.
  • This applies to various types of small business loans, including development loans, disaster assistance, and microloans.
  • Financial institutions will be required to submit annual reports on these referrals, and the government will analyze their effectiveness and publish results to assess whether assistance reaches those in need.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sánchez, Linda T. [D-CA-38].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy