Microbusiness Support Act
The Microbusiness Support Act would amend the Small Business Act to create a new SBA direct loan program specifically for microbusinesses. It defines a microbusiness as a for-profit business that is independently owned and operated, has no more than 10 full-time employees, and has annual revenue of no more than $5 million or the applicable NAICS-based size standard, whichever is lower. The bill authorizes the SBA Administrator to originate and disburse direct loans, including through partnerships with third parties, and allows the agency to request documentation to verify eligibility.
The program would cap loans at $100,000 and permit the SBA, authorized third parties, or agents to charge and retain fees to cover application referral, origination, underwriting, servicing, liquidation, and related administrative costs. It also allows fees for revolving lines of credit, including unused and draw fees, and permits payments to third parties such as financial institutions that help administer the program. The Administrator would be required to issue interim final rules within 90 days to set loan terms, including repayment, underwriting, interest rate, maturity, and other conditions; the bill sets the interest rate by reference to existing SBA rules but substitutes 6 percent per annum for 1 percent per annum.
If enacted, the bill would expand the Small Business Act by adding a new federal lending authority targeted at very small businesses that may have difficulty accessing conventional credit. It would give the SBA a direct-loan tool, rather than relying solely on guaranteed lending, and would create new administrative responsibilities for eligibility verification, rulemaking, loan servicing, and partnerships with third-party lenders or agents. The measure would primarily affect microbusiness owners, SBA program administrators, and participating financial intermediaries.
The available record shows the bill was introduced and referred to the Senate Committee on Small Business and Entrepreneurship, with no recorded votes or committee transcript excerpts provided. Based on the text alone, the bill appears to be framed as a support measure for very small businesses, suggesting a generally pro-small-business policy intent. Because there is no recorded debate or vote history in the materials provided, there is no documented public sentiment beyond the bill’s sponsorship and referral status.
The main points of potential contention are likely to be the federal government’s direct lending role, the use of third-party partners and fee authority, and the program’s underwriting and interest-rate terms. Supporters would likely emphasize expanded access to capital for microbusinesses, while critics may question administrative complexity, taxpayer exposure, and whether the SBA should originate loans directly rather than through existing lending channels. The eligibility thresholds, fee structure, and 6 percent interest rate could also draw scrutiny from stakeholders concerned about program reach, borrower costs, or competition with private lenders.