Federal legislation aims to help small businesses

WASHINGTON, D.C. — New federal legislation aims to make it easier for vital players in the economy — namely, small businesses — to get the loans they need.

The Help Small Businesses Access Affordable Credit Act, co-sponsored by U.S. Senator Gary Peters (D-MI), would allow the U.S. Small Business Administration to increase loan limits by up to ten percent in a fiscal year without legislative action. A recent spike in demand caused the program to reach its limit, leading to disruptions and ultimately resulting in Congress raising the cap.

The Congressional Budget Office reports that this legislation would have zero associated costs.

“What we’re focused on is making sure that small businesses have access to the money they need to be successful, and this will give more tools to the SBA to make it happen,” said Senator Gary Peters. “It gives them more flexibility, which means they can be even more efficient in making loans, and if they’re more efficient, that means more money for the actual loans going to businesses.”

Peters expects the proposed legislation, which is currently under consideration by the Senate Small Business and Entrepreneurship Committee, to move forward soon. He is among five Senators, both Democrat and Republican, who co-sponsor the bill.