Microloan bill unanimously approved by House

September 1, 2017

The House of Representatives recently passed the Microloan Modernization Act, a major win for small businesses.

Approximately two months after being introduced for the House of Representatives' consideration, the Microloan Modernization Act of 2017 has won the approval of Congress, much to the delight of the small-business owner community.

H.R. 2056 has bipartisan support
Immediately prior to Congress adjourning for its annual August break, the House overwhelmingly passed an amended version of H.R. 2056. Should the bill pass the Senate – as is expected – and move on to the president for his signature, the Small Business Administration's microloan program should give aspiring business owners greater access to low-interest loans, up to and including $50,000.

Rep. Stephanie Murphy of Florida's seventh district, who introduced the bill, noted that the legislation for her really hits home, being an entrepreneur prior to serving on Capitol Hill.

"As a former businesswoman, I know that access to capital is the greatest challenge facing new and growing businesses," Murphy explained in a statement. "That's why I'm proud my microloan bill passed the House with bipartisan support. Obtaining a loan can mean the difference between a small business starting up and succeeding or struggling and shuttering."

Murphy further stated that H.R. 2056 has the potential to be a real boon for the economy, especially that of the Sunshine State, giving budding entrepreneurs the resources they need to increase their capital.

Microloans serve as stepping stone for start-up companies, providing them with the resources they require to get their companies up and running, without experiencing severe debt that can be difficult for companies to pay back in the early going. With the average amount being roughly $13,000, according to the Small Business Administration, microloans can be used for a variety of purposes, such as purchasing machinery and equipment, inventory, supplies or set aside for working capital. Much like eligibility, interest rates for microloans tend to vary, but are generally between 5 and 15 percent.

Appropriately named, microloans are small in size, making them ideal for start-up companies.
Appropriately named, microloans are small in size, making them ideal for start-up companies' use.

NAWBO delighted by bill's passage
A number of influential small-business interest groups applauded the House's unanimous support of the Microloan Modernization Act, including the National Association of Women Business Owners. NAWBO national board chair Kathy Warnick indicated that the bill has the potential to open doors for lots of people.

"Regardless of size or sector or stage of development, business owners require capital," Warnick stressed. " NAWBO National is proud to support the Microloan Modernization Act and its dual push for the expansion of the existing microloan program, as well as a study of the program to measure its efficiency and effectiveness and report the results to the Small Business Committee."

Warnick went on to say she's optimistic the bill's passage will increase participation in the SBA's microloan program.

The full faith and credit of the government's loan programs provides access, but it's important to select the right loan. Growth Capital Corp. has the resources and tenured service to set business owners up with program that's best for them, be it the Community Advantage Loan Program, Ohio 166 Regional for local companies or SBA 504. In short, we provide business people with the tools they need to fuel their success.