House Passes Bipartisan Small Business Bill Led by Congressman Garbarino

WASHINGTON – Last night, the U.S. House of Representatives passed the Microloan Improvement Act, a bipartisan bill co-authored by Congressman Andrew Garbarino (R-NY-02) and Congressman Andy Kim (D-NJ-03) that aims to cut red tape and help small businesses access the capital needed to get them through the current economic crisis and grow.

“Coronavirus brought to the foreground what small business owners have been telling the federal government for decades – red tape and federal regulation is destroying their businesses,” said Congressman Garbarino. “I’m proud to lead this bipartisan legislation that would cut through burdensome regulations and enact commonsense reform to the SBA lending process. I now call on my Senate counterparts to quickly pass this legislation so we can alleviate some of the burden Long Island small business owners have felt since the onset of this pandemic.”

“We need to do everything we can to help our small businesses in this critical time,” said Congressman Kim. “We’ve seen too many times during this crisis small businesses that have missed out because the system simply doesn’t reach them. This bill will make a big difference for small businesses across our country, and I’m proud to work with this bipartisan team to have this bill passed. I hope my colleagues in the Senate move quickly to take it up and pass it with the same bipartisan effort we showed today.”

Specifically, the Microloan Improvement Act would increase the number of nonprofit, community-based lenders eligible for the lowest interest rate on loans from the SBA and allow these lenders to offer lines of credit to small businesses, while extending the maximum repayment term for loans. This would help cut through bureaucratic red tape identified as restricting lending to small businesses looking to grow and create jobs.

Additional co-sponsors of the Microloan Improvement Act include Congressman Tim Burchett (R-TN-2) and Congresswoman Marie Newman (D-IL-3).

“This bipartisan bill is straightforward and effective: it increases the number of nonprofit, community-based lenders that can offer loans through the SBA’s microloan program,” Congressman Burchett said. “I’m proud to be a part of this effort that will help aspiring small business owners and entrepreneurs chase down the American Dream.”

“As a former small business owner, I know first-hand that loan opportunities can make a life-changing difference for a business. As tens of thousands of businesses continue to be devastated by this pandemic, we have a fundamental obligation to remove barriers and bureaucratic red tape to ensure small businesses have easier and faster access to receiving microloans,” said Congresswoman Newman. “I'm proud to have passed this legislation, which will further ensure financial support for the smallest of our small businesses so they can not only survive this pandemic but bring back their workers and help reignite our economy.” 

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