Provides support for community development and economic growth
Washington—Senator Dianne Feinstein (D-Calif.) today introduced the Small Business Lending and Inequality Reduction Act, a bill to increase resources available for small businesses in traditionally underserved communities.
“I have heard from small businesses still struggling to get back on their feet following the recession that there is a need for additional funding resources so that they can succeed and grow,” Feinstein said. “This bill would help small businesses gain the necessary funding to sustain themselves and better serve their communities.”
The bill has two main provisions:
- It would make permanent the existing Community Advantage pilot program, administered by the Small Business Administration, and increase the maximum loan amount to expand the funding options for small businesses. This program allows community development institutions to receive loan guarantees for loans to small businesses in underserved markets.
- It would change current law so that certain community development institutions have expanded access to the Federal Home Loan Bank resources, allowing them to lend more to underserved communities.
The full text of the legislation can be found here.