WASHINGTON, D.C. — Representative Chrissy Houlahan (D-PA) announced her legislation was successfully adopted Friday in the House Small Business Committee’s $25 billion funding package advancing through the House. The committee now sends the bill to the House Budget Committee for inclusion in President Biden’s next legislative priority – the Build Back Better Act.
“As an entrepreneur, I know how difficult it can be to scale a business under normal circumstances, let alone during a global pandemic,” said Houlahan. “As Congress considers this next round of investments in our Main Streets, I am proud to bring the concerns of my community to the forefront. Simply put, the recovery of our small business community is the linchpin to the recovery of our economy.”
Houlahan’s key initiative adopted in the legislative package would invest $9.5 billion to establish a subprogram within the Small Business Investment Company (SBIC) program to provide long-term capital to underserved markets and small manufacturers.
“Not only must we help our small businesses recover but we must do so in a way that reflects the diversity of our investment community,” added Houlahan.
In addition to Houlahan’s SBIC initiative, the legislation includes the following investments:
- $35 million in funding for veteran federal procurement entrepreneurship training
- $1 billion in funding for an uplift accelerator program and business development academy at Historically Black Colleges and Universities (HBCUs) and Minority Serving Institutions (MSIs) for underrepresented small businesses
- Provides $1 billion to establish a national network of business incubators
- $20 million to enhance the SBA’s Office of Native American Affairs
- $600 million to enhance, improve, and expand the SBA’s Community Advantage program
- $4.465 billion to fund a direct loan product under the current 7(a) lending program administered by the SBA
- $500 million to fund a pilot program for eligible cooperatives and employee-owned businesses to receive SBA loan products without the requirement of a personal or entity guarantee
- Invests $2.746 billion to establish a direct lending subprogram under the 504/CDC lending program to allow CDCs to make loans to small contractors, small manufacturers, and small businesses in underrepresented markets
- Over $100 million to invest in entrepreneurial training initiatives for the formerly incarcerated
“Small businesses are the foundation of our economy and ultimately the key to our nation making a full economic recovery,” said Chairwoman Nydia M. Velázquez (D-NY). “The small business policies that we advanced today represent a generational investment in America’s entrepreneurs and will help businesses recover from COVID now and prosper in the future. That’s why Congress and the Biden administration must continue moving forward with the Build Back Better Agenda and pass this legislation.”
Read a section-by-section summary of the legislation including Houlahan’s SBIC initiative here.
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