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House of Representatives pass bill to increase capital for small business owners

The bill, authored by Representative Tim Burchett, aims to increase access to capital for small business owners.
Rep. Tim Burchett (R-TN) / (Source: Gray DC)
Rep. Tim Burchett (R-TN) / (Source: Gray DC)(GRAYDC)
Published: Apr. 16, 2021 at 12:13 PM EDT
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WASHINGTON, D.C. (WVLT) - The U.S. House of Representatives unanimously passed the Microloan Transparency and Accountability Act Thursday night.

The bill, authored by Representative Tim Burchett, aims to increase access to capital for small business owners.

“Wealthy folks have family assets to start a small business, and not everyone inner cities and rural Appalachia have the same opportunities,” Rep. Burchett said. “These are hard-working Americans just looking to get their foot in the door and have a fair shot. The fixes my legislation makes to the SBA’s Microloan Program will allow America’s entrepreneurs – regardless of background or location – to have easier access to capital that helps them reach their goals.

Burchett said The Small Business Administration Microloan Program currently has low participation in rural areas. Burchett’s legislation was created to address that issue by offering a five percent technical assistance grant to SBA microloan intermediaries when these institutions work with rural small businesses.

According to the legislation, Microloan intermediaries must make 25% of their loans to rural small businesses to be eligible for the technical assistance grant.

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