H.R. 4153: STRONG Act

The STRONG Act is proposed legislation aimed at modifying the Small Business Act and the Small Business Investment Act of 1958. The main purpose of the bill is to increase the maximum loan amounts available to small businesses through specific loan programs. The key changes outlined in the bill include:

Maximum Loan Amount Increase for 7(a) Loans

The bill proposes to amend the 7(a) loan program under the Small Business Act. It changes the maximum loan amount from:

• Current: $3,750,000 (and up to $5,000,000 in certain circumstances)
• Proposed: $7,500,000 (and up to $10,000,000 in certain circumstances)

This revision intends to provide more financial support to small businesses in need of capital.

Maximum Loan Amount Increase for Development Company Loans

The bill also suggests modifications to the maximum loan amounts available under the Small Business Investment Act for development company loans. This includes the following changes:

• Current maximum loan: $5,000,000
• Proposed maximum loan: $10,000,000

Additionally, another provision within the same section that previously indicated a maximum of $5,500,000 is also changed to $10,000,000. These changes aim to increase the amount of capital available for small business development through investment companies.

Purpose of the Bill

The overarching goal of the STRONG Act is to enhance the ability of small businesses to access larger loan amounts, thereby supporting their growth and enabling them to better compete in various markets. This legislative move is seen as a way to stimulate national economic growth by providing increased opportunities for small business financing.

Summary of Loan Program Changes

• Increase in 7(a) loan maximum from $3,750,000 to $7,500,000 (up to $10,000,000 for certain cases).
• Increase in development company loan maximum from $5,000,000 to $10,000,000.

Overall Impact

By raising these limits, the bill seeks to empower small businesses with greater access to necessary funds, fostering an environment conducive to economic development, job creation, and strengthening the overall economy.

Relevant Companies

• None found