Senate Bill 298: Returning SBA to Main Street Act
Date: January 31, 2025
Sponsor: Senator Marco Rubio (R-FL)
Summary:
The Returning SBA to Main Street Act (S. 298) proposes significant changes to the Small Business Administration (SBA) to enhance its focus on supporting small businesses and entrepreneurs.
Key Features:
1. Increased Lending Capacity:
- Authorizes an additional $100 billion in loan authority for SBA’s flagship 7(a) loan program.
- Raises the maximum 7(a) loan amount from $5 million to $10 million.
- Streamlines the application process and reduces the time required for loan approval.
2. Improved Access to Capital:
- Creates a new “microloan” program offering loans of up to $50,000 targeted at underrepresented entrepreneurs and small businesses in underserved communities.
- Expands the SBA’s Small Business Credit Initiative (SBCI) to provide more low-interest loans and equity investments to small businesses.
3. Streamlined Regulations:
- Reduces regulatory burdens on small businesses by exempting them from certain federal contracting requirements.
- Simplifies the process for small businesses to obtain licenses and permits.
- Establishes a Small Business Regulatory Fairness Act to ensure that regulations do not disproportionately impact small businesses.
4. Enhanced Training and Education:
- Expands SBA’s technical assistance and training programs to help small businesses start, grow, and compete.
- Creates a new grant program for small businesses to access consulting services and professional development opportunities.
5. Prioritization of Small Businesses:
- Directs the SBA to prioritize small businesses and entrepreneurs in its programs and services.
- Establishes a Small Business Advisory Council to provide input and guidance to the SBA on its policies and programs.
Background:
The Returning SBA to Main Street Act is a response to concerns that the SBA has become too focused on large businesses and its mission has strayed from its original purpose of supporting small businesses. Supporters of the bill argue that it will increase access to capital, reduce regulatory burdens, and strengthen the SBA’s commitment to helping small businesses succeed.
Current Status:
S. 298 was introduced in the Senate on January 26, 2025. It has been referred to the Senate Committee on Small Business and Entrepreneurship for consideration. The bill has bipartisan support and is expected to receive significant attention in the upcoming congressional session.
Significance:
If passed, the Returning SBA to Main Street Act would have a significant impact on small businesses and entrepreneurs in the United States. It would provide increased access to capital, reduce regulatory burdens, and enhance the SBA’s focus on its core mission. The bill has the potential to revitalize the small business sector and contribute to economic growth and job creation.
S. 298 (IS) – Returning SBA to Main Street Act
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