Microbusiness Support Act

Direct loans for microbusinesses

If enacted, the bill would let the Small Business Administration make direct loans to "microbusinesses." A microbusiness would be a for‑profit firm with no more than 10 full‑time equivalent employees. Annual revenue would have to be no more than the lesser of $5,000,000 or the NAICS size standard for the business. Full‑time would mean at least 35 hours per week or another commonly accepted full‑time standard, and the Administrator could ask for documents to verify eligibility. Loans would be limited to $100,000 per microbusiness. The SBA, authorized third parties, or agents would be able to charge, collect, and keep fees (including unused and draw fees for revolving credit) and to pay partners or lending agents to help refer, originate, service, or liquidate loans. The Administrator would have 90 days after enactment to issue interim final rules setting repayment, underwriting, interest rate, maturity, and other terms; the bill substitutes 6 percent per year for the previously cited 1 percent rate.