The U.S. Small Business Administration (SBA) is a federal agency with a mission to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.” The House passed 5 bipartisan bills to make the SBA work better for small businesses. The measures still need to be passed by the Senate, and it’s anyone’s guess whether this will happen this year, or at all. But here’s a roundup of these measures.
The measures include:
1) Investing in All of America Act of 2025 (H.R. 2066)
One of the biggest challenges for small businesses today is access to capital. The Federal Reserve notes this is due to high interest rates and serious outstanding debt. Under the Small Business Investment Act, small business investment companies (SBICs) can leverage private capital with government-guaranteed debt up to specific limits (leverage limits) to facilitate lending to small businesses. The bill would exclude the leverage limit for smaller enterprises located in rural or low-income areas as well as for businesses in critical technology areas and small manufacturers to provide greater access to capital by such eligible businesses.
2) SBA IT Modernization Reporting Act (H.R. 4491)
A year ago, the GAO made 14 recommendations to modernize IT for the SBA, some of which are being worked on. The bill would mandate that recommendations be implemented now. Generally, these related to risks and risk mitigation in government contracting certification and managing cybersecurity vulnerabilities.
3) SBA Fraud Enforcement Extension Act (H.R. 4495)
During COVID, the SBA made $16 million in grants to economically hard-hit live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters during the uncertain economic conditions caused by the pandemic. The SBA also providing $28.6 billion in funding to help restaurants and other eligible businesses keep their doors open.
The bill would extend the statute of limitations for both civil and criminal violations of, or conspiracies to violate (i.e., fraud) related to the Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) from the current 5 years to 10 years. This is the same period used for fraud in the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDL).
4) Office of Rural Affairs Enhancement Act (H.R. 4549)
The Office of Rural Affairs was originally authorized in 1990 to focus on rural-area small businesses. Checking with the SBA (including an email to the SBA help desk) does not disclose any listing for this office, although there is a Rural Initiative Pilot Program. Still, this bill would boost the status of the SBA’s Office of Rural Affairs by elevating the role of Director to Assistant Administrator. It would also require the Office to conduct webinars and outreach events. Maybe the legislative effort will revive this Office?
5) Made in America Manufacturing Finance Act (H.R. 3174)
The SBA generally doesn’t make direct loans but provides guarantees to lenders. The SBA 7(a) loan program is generally for working capital and buying equipment, while the 504 loan program is long-term fixed-rate financing for commercial real estate and other major fixed assets. This bill would double the loan caps for small manufacturers from $5 million to $10 million for the SBA’s 7(a) and 504 loan programs.
Final thought
The SBA has been around since 1953 to provide critical assistance—access to capital, education, certifications for government contracting, and more—to help small businesses start and grow. Improvements are always welcome.
More concerning legislation affecting small businesses can be found in this list of blogs.
