H.R. 8563: Investing in the American Dream Act

This bill, titled the Investing in the American Dream Act, aims to clarify and potentially expand the eligibility criteria for small businesses to obtain certain types of federal loans. Here’s a breakdown of what the bill proposes:

Definitions

The bill includes specific definitions that are important for understanding its provisions:

• Covered loan: This term refers to various types of loans that are guaranteed under different sections of the Small Business Act, including:
  • Section 7(a) loans, which are general loans for small businesses.
  • Microloans under Section 7(m), which are smaller loans for those who may not qualify for conventional bank loans.
  • Loans guaranteed under Title V of the Small Business Investment Act.
  • Surety bond guarantees related to small business projects.
• Eligible individual: This term includes certain groups who can own a small business, such as:
  • Asylees and refugees.
  • Nonimmigrants with a valid stay.
  • Permanent residents.
  • Individuals granted deferred action under specific DHS policies.
• Small business concern: This refers to any small business that meets the criteria defined in the Small Business Act.

Eligibility for Business Loans

The bill outlines specific requirements for small businesses to qualify for covered loans:

• To qualify, a small business must be located in the United States.
• It must be at least 51% owned and controlled by either:
  • Citizens or nationals of the United States, or
  • Eligible individuals, provided they are lawful residents and authorized to work in the U.S.

Prohibition of Denial

Additionally, the bill stipulates that a small business concern cannot be denied eligibility for a covered loan solely based on being owned by eligible individuals, as long as it fulfills the ownership and control requirements.

Rule of Construction

Lastly, the act clarifies that it does not give the Small Business Administration (SBA) the authority to raise the percentage requirement concerning ownership and control of small businesses.

Relevant Companies

None found