[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7971 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7971
To amend the Small Business Act to require certain lenders and
development companies to refer certain borrowers to a resource partner,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 7, 2022
Ms. Sanchez (for herself, Mr. Lowenthal, Ms. Porter, Mrs. Napolitano,
Ms. Bass, Ms. Chu, Ms. Roybal-Allard, Mr. Lieu, Mr. Vargas, Ms. Norton,
Mrs. Cherfilus-McCormick, Ms. Brown of Ohio, and Mrs. Torres of
California) introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to require certain lenders and
development companies to refer certain borrowers to a resource partner,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Entrepreneurs and
Economic Development Act'' or the ``SEED Act''.
SEC. 2. RESOURCE PARTNER REFERRALS.
(a) 7(a) Loans.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended by adding at the end the following new paragraph:
``(38) Resource partner referrals.--
``(A) In general.--If a lender determines that a
borrower is not eligible for a loan under this
subsection, such lender shall refer the borrower to a
resource partner (as defined in section 5004 of the
American Rescue Plan Act of 2021). Such referral shall
include--
``(i) the address, phone number, and
website (if available) of such resource
partner; and
``(ii) a description of the services
offered by such resource partner.
``(B) Report.--A lender shall submit to the
Administrator an annual report describing referrals
made under this paragraph.''.
(b) Disaster Assistance Loans.--Section 7(f) of the Small Business
Act (15 U.S.C. 636(f)) (relating to Additional requirements for 7(b)
loans) is amended by adding at the end the following new paragraph:
``(2) Resource partner referrals.--
``(A) In general.--If a lender determines that a
borrower is not eligible for a loan under subsection
(b), such lender shall refer the borrower to a resource
partner (as defined in section 5004 of the American
Rescue Plan Act of 2021). Such referral shall include--
``(i) the address, phone number, and
website (if available) of such resource
partner; and
``(ii) a description of the services
offered by such resource partner.
``(B) Report.--A lender shall submit to the
Administrator an annual report describing referrals
made under this paragraph.''.
(c) Microloans.--Section 7(m)(6) of the Small Business Act (15
U.S.C. 636(m)(6)) is amended by adding at the end the following new
subparagraph:
``(F) Resource partner referrals.--
``(i) In general.--If an eligible
intermediary determines that a person is not
eligible for a loan under this subsection,
eligible intermediary lender shall refer the
borrower to a resource partner (as defined in
section 5004 of the American Rescue Plan Act of
2021). Such referral shall include--
``(I) the address, phone number,
and website (if available) of such
resource partner; and
``(II) a description of the
services offered by such resource
partner.
``(ii) Report.--An eligible intermediary
shall submit to the Administrator an annual
report describing referrals made under this
subparagraph.''.
(d) State and Local Development Company Loans.--Section 502 of the
Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by
adding at the end the following new paragraph:
``(8) Resource partner referrals.--
``(A) In general.--If a development company
determines that a person is not eligible for assistance
under this title, such development company shall refer
the borrower to a resource partner (as defined in
section 5004 of the American Rescue Plan Act of 2021).
Such referral shall include--
``(i) the address, phone number, and
website (if available) of such resource
partner; and
``(ii) a description of the services
offered by such resource partner.
``(B) Report.--A development company shall submit
to the Administrator an annual report describing
referrals made under this paragraph.''.
(e) Reports.--
(1) Lender reports.--Each lender and development company
(as defined in section 103 of the Small Business Investment Act
of 1958 (15 U.S.C. 662)) authorized to make loans by the
Administrator of the Small Business Administration shall submit
to the Administrator an annual report detailing referrals made
by such lender or development company pursuant to a covered
provision, as applicable.
(2) Administrator reports.--Section 10 of the Small
Business Act (15 U.S.C. 639) is amended by adding at the end
the following new subsection:
``(i) Lender Referral Report.--
``(1) In general.--Along with the report required under
subsection (a), the Administrator shall include a description
of the number of referrals to resource partners made by lenders
or development companies pursuant to a covered provision. Such
report shall be published on a website of the Administration
and shall include the following:
``(A) An analysis of the effectiveness of a
referral and any resulting services provided by the
resource partner.
``(B) The nature of the services provided by a
resource partner, including (if applicable) the number
of training or counseling sessions provided and the
number of hours of assistance provided.
``(C) Whether any persons received assistance as a
result of such a referral.
``(2) Covered provision defined.--In this subsection, the
term `covered provision' means sections 7(a)(38), 7(f)(2),
7(m)(6)(F), and section 502(8) of the Small Business Investment
Act of 1958.''.
(f) GAO Report.--
(1) In general.--Not later than February 1, 2023, and every
two years thereafter, the Comptroller General of the United
States shall submit to Congress, and publish on a publicly
available website, a report on the rate of referrals to
resource partners made by lenders or development companies
pursuant to a covered provision and data on persons that
received assistance as a result of such a referral.
(2) Definitions.--In this subsection:
(A) Resource partner.--The term ``resource
partner'' has the meaning given in section 5004 of the
American Rescue Plan Act of 2021 (15 U.S.C. 9013).
(B) Covered provision.--The term ``covered
provision'' means--
(i) sections 7(a)(38), 7(f)(2), and
7(m)(6)(F) of the Small Business Act (15 U.S.C.
631 et seq.), as added by this Act; and
(ii) section 502(8) of the Small Business
Investment Act of 1958 (15 U.S.C. 696), as
added by this Act.
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