Microbusiness Support Act

Key Points

• The bill creates a new direct loan program at the Small Business Administration specifically for microbusinesses, defined as companies with 10 or fewer full-time employees and annual revenue under $5 million.
• Eligible microbusinesses could borrow up to $100,000 directly from the government or through third-party partners. This is different from many SBA programs that route loans through private banks, making it potentially easier for very small firms to access funding.
• The interest rate on these loans would be capped at 6 percent per year. The SBA and its partners can also charge fees to borrowers to cover costs like underwriting, servicing, and closing the loans.
• If enacted, the SBA would need to publish interim final rules within 90 days setting the detailed terms of the program, including repayment schedules, underwriting criteria, and maturity.