Rep. Shri Thanedar Introduces the "Loans in our Neighborhoods (LIONS) Act" to Enhance Small Business Financing
Washington, DC - February 12, 2024 - Today, Congressman Shri Thanedar (MI-13) announced the introduction of the "Loans in our Neighborhoods (LIONS) Act," a bill designed to amend the Small Business Act by increasing the maximum gross loan amount for section 7(a) loans. The LIONS Act seeks to raise the limit from $5,000,000 to $10,000,000, thereby providing greater financial support to small businesses.
This initiative is focused on strengthening the support system for small businesses, recognizing their critical role in local economies and communities.
The Small Business Administration's (SBA) 7(a) Loan Program is a primary resource for helping small businesses. These loans serve various purposes, allowing small businesses to acquire or enhance properties, or to help cover daily business expenses, settle existing debts, purchase equipment or furnishings, alter business ownership, or a combination of these needs.
"By introducing the LIONS Act, we are taking a significant step to bolster the resources available to the small business community in Michigan and across the country," said Congressman Thanedar. "This act is about ensuring that the financial needs of small businesses are adequately met, allowing them to continue driving our economy and creating jobs."
“For the past months, AAHOA has persistently advocated for the increase of SBA Section 7(a) loan amounts, which were last established at $5M nearly 15 years ago. On behalf of our AAHOA hotelier members, we have urged lawmakers to raise the SBA loan limits to $10M to align with the prevailing economic conditions, thereby fostering a sustainable business model for the future," said AAHOA President & CEO Laura Lee Blake. "AAHOA expresses gratitude for the leadership of Congressman Shri Thanedar, who recently announced the introduction of the Loans In Our Neighborhoods (LIONS) Act. We celebrate the introduction of the LIONS Act because AAHOA is moving the ball forward on behalf of the owners in the industry. It is always a joy when our diligence pays off, and elected officials take note of the tremendous economic impact that our members have in this country. If enacted, this legislation will afford AAHOA Members, as well as entrepreneurs across the U.S., increased opportunities to propel economic growth in virtually every city across the nation.”
“For AAHOA Members, over the past decade and especially in a post-pandemic world, the costs of doing business, constructing hotels, and purchasing properties have skyrocketed," said AAHOA Chairman Bharat Patel. "In 2024, the value of hotel properties is significantly higher than the current loan limits, leaving substantial collateral for higher loan amounts. AAHOA has been at the forefront of this issue for quite some time, and we applaud the introduction of the LIONS Act, introduced by Congressman Shri Thanedar. If passed into law, increasing SBA loan limits from $5M to $10M has the potential to constitute some of the most impactful legislative measures affecting hoteliers in the foreseeable future.”
Having been referred to the appropriate House Committee, the LIONS Act demonstrates Congressman Thanedar's ongoing dedication to fostering the success and sustainability of small businesses in Michigan and across the nation.
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