Small Business Committee Unanimously Passes Moulton Bill to Increase Access to Capital for Startups and Small Businesses

June 10, 2015

Washington, D.C. - Today, the House Committee on Small Business unanimously passed legislation co-authored by Congressman Seth Moulton (D-MA) to increase access to capital for startups and small businesses by modernizing the Small Business Administration’s (SBA) Microloan Program. The bill, the Microloan Modernization Act, aims to increase loans available to small businesses and provide greater flexibility for borrowers. Moulton co-authored the bipartisan bill with Representative Carlos Curbelo (R-FL) and Representative Nydia Velasquez (D-NY).

“Small businesses are the backbone of our nation’s economy,” said Moulton. “Too often our small business leaders, and especially aspiring entrepreneurs, either try to self-finance new business ventures on personal credit cards or don’t take the risk at all given the fear of failure. We need to give these business leaders the tools and resources they need to start new business and grow existing ones. Expanding access to capital is a critical part of ensuring our small businesses have the opportunity to thrive.”

The Merrimack Valley Small Business Center services loans through the SBA’s Microloan Program for entrepreneurs in Middlesex and Essex Counties.

The Microloan Modernization Act expands access to capital and offers greater flexibility to borrowers, specifically it:

Creates a waiver for the “25/75 rule,” an outdated formula that prevents microloan intermediaries like the Merrimack Valley Small Business Center from adequately addressing the needs of each borrower;

Increases the aggregate loan limit cap to $6 million to better serve small business borrowers in high-demand areas;

Extends the repayment period to 10 years for loans greater than $10,000;

Authorizes the SBA to extend lines of credit for small businesses.

For more information about Congressman Seth Moulton visit our website at / or find the Congressman on Facebook or Twitter.

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