I 

117TH CONGRESS 

1ST SESSION H. R. 6317 

To amend the Small Business Act to address the participation of cooperatives 

in the program carried out under section 7(a) of that Act, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2021 

Mr. NEGUSE introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Small Business Act to address the participation of cooperatives in the program carried out under 

section 7(a) of that Act, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Capital for Coopera5 tives Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) Cooperative businesses operate on the basis 

2 of 1 member, 1 vote. 

3 (2) Cooperatives have helped to improve the 

4 economic conditions of the people of the United 

5 States for more than a century by increasing com6 petition and helping small players gain parity in the 

7 market. 

8 (3) Research has shown that cooperatives are 

9 more resilient to economic business cycles than other 

10 business models because cooperatives require mem11 ber-owners of the cooperative to work together and 

12 prepare for the future. 

13 (4) The mission of the Small Business Adminis14 tration (referred to in this Act as the ‘‘Administra15 tion’’) is to help the people of the United States 

16 start, build, and grow businesses. 

17 (5) The requirement of the Administration that 

18 some borrowers provide a personal guarantee with 

19 respect to certain Administration loans has pre20 vented cooperatives from accessing the safe and af21 fordable financing available from the Administration. 

22 SEC. 3. COOPERATIVES. 

23 (a) IN GENERAL.—Section 7(a)(15)(B)(iv) of the 

24 Small Business Act (15 U.S.C. 636(a)(15)(B)(iv)) is 

25 amended— 


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1 (1) in the matter preceding subclause (I), by 

2 striking ‘‘, or to a cooperative in accordance with 

3 paragraph (35)’’; and 

4 (2) in subclause (I), by striking ‘‘or coopera5 tive’’. 

6 (b) SBA RESPONSIBILITIES.— 

7 (1) DEFINITIONS.—In this subsection: 

8 (A) ADMINISTRATOR.—The term ‘‘Admin9 istrator’’ means the Administrator of the Ad10 ministration. 

11 (B) COOPERATIVE.—The term ‘‘coopera12 tive’’ has the meaning given the term in section 

13 7(a)(35) of the Small Business Act (15 U.S.C. 

14 636(a)(35)). 

15 (C) PROGRAM.—The term ‘‘Program’’ 

16 means the program carried out under section 

17 7(a) of the Small Business Act (15 U.S.C. 

18 636(a)). 

19 (D) SMALL BUSINESS CONCERN.—The 

20 term ‘‘small business concern’’ has the meaning 

21 given the term in section 3(a) of the Small 

22 Business Act (15 U.S.C. 632(a)). 

23 (E) WORKING GROUP.—The term ‘‘Work24 ing Group’’ means the interagency working 

25 group coordinated and chaired by the Secretary 


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1 of Agriculture pursuant to section 310B(e)(12) 

2 of the Consolidated Farm and Rural Develop3 ment Act (7 U.S.C. 1932(e)(12)), as amended 

4 by subsection (c). 

5 (2) COORDINATION; AMENDMENTS TO RULES; 

6 REPORT.—The Administrator shall— 

7 (A) beginning not later than 60 days after 

8 the date of enactment of this Act, coordinate 

9 and participate with the Working Group to— 

10 (i) develop recommendations regard11 ing how the Administrator can coordinate 

12 with the heads of other Federal agencies to 

13 promote, support, and increase the number 

14 of cooperatives; and 

15 (ii) ensure coordination between the 

16 Administrator and— 

17 (I) other Federal agencies; and 

18 (II) national and local organiza19 tions representing cooperatives and 

20 small business concerns; 

21 (B) not later than 180 days after the date 

22 of enactment of this Act— 

23 (i) amend the rules of the Administra24 tion with respect to guarantees for loans 


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1 made to cooperatives under the Program, 

2 which may include— 

3 (I) requiring the Administrator 

4 to guarantee a loan made to a cooper5 ative under the Program if the lender 

6 with respect to the loan can dem7 onstrate that the cooperative is able to 

8 repay the loan; and 

9 (II) establishing lending criteria 

10 for cooperatives under the Program 

11 that are not based on personal or en12 tity guarantees provided by the mem13 ber-owners of the cooperative; and 

14 (ii) submit to Congress a report docu15 menting the amendments made under 

16 clause (i); and 

17 (C) not later than 1 year after the date of 

18 enactment of this Act, submit to Congress a re19 port regarding— 

20 (i) education regarding cooperatives 

21 that the Administrator has provided to— 

22 (I) officials of the Administra23 tion; 

24 (II) lenders participating in the 

25 Program; and 


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1 (III) small business development 

2 centers described in section 21 of the 

3 Small Business Act (15 U.S.C. 648); 

4 and 

5 (ii) during the period beginning on the 

6 date of enactment of this Act and ending 

7 on the date on which the report is sub8 mitted— 

9 (I) the number of applications 

10 submitted by cooperatives for loans 

11 under the Program; and 

12 (II) the number of applications 

13 received under subclause (I) that were 

14 approved by the Administrator. 

15 (c) INTERAGENCY WORKING GROUP ON COOPERA16 TIVE DEVELOPMENT.—Section 310B(e)(12) of the Con17 solidated Farm and Rural Development Act (7 U.S.C. 

18 1932(e)(12)) is amended— 

19 (1) by striking ‘‘Not later’’ and inserting the 

20 following: 

21 ‘‘(A) IN GENERAL.—Not later’’; and 

22 (2) by adding at the end the following: 

23 ‘‘(B) MEETINGS.—The interagency work24 ing group described in subparagraph (A)— 

25 ‘‘(i) shall meet— 


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1 ‘‘(I) at such times determined 

2 necessary by the Secretary; and 

3 ‘‘(II) not less frequently than bi4 annually; and 

5 ‘‘(ii) may conduct meetings in person 

6 or through the use of electronic re7 sources.’’. 

Æ 


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