Rep. Shri Thanedar Re-Introduces the "Loans In Our Neighborhoods (LIONs) Act" to Enhance Small Business Financing
Washington, DC - July 30, 2024 - Today, Congressman Shri Thanedar (MI-13) announced the re-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 new version of the bill also includes a 75% guarantee rate on loans of up to $10 million. This guarantee from the SBA makes the program attractive for lenders to participate, acting as insurance in case of default. The initiative is focused on strengthening the support system for small businesses, recognizing their critical role in local economies and communities.
"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."
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, help cover daily business expenses, settle existing debts, purchase equipment or furnishings, alter business ownership, or meet a combination of these needs.
The legislation also has bipartisan support, with original co-sponsor Congressman Mark Alford (MO-04) saying, “Across this country, costs continue to skyrocket for entrepreneurs and small business owners. With nearly 4 years of continuous inflation, small business owners need to be able to access larger pools of capital. This legislation will ensure that more small businesses across America can access the critical resources they need to create good-paying jobs and support our communities.”
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