SEED Act

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. 1. Short title This Act may be cited as the Supporting Entrepreneurs and Economic Development Act SEED Act 2. Resource partner referrals (a) 7 (a) Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (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) (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) (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 (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 (2) Administrator reports Section 10 of the Small Business Act ( 15 U.S.C. 639 (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 . (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 15 U.S.C. 9013 (B) Covered provision The term covered provision (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. (ii) section 502(8) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696

Summary: Supporting Entrepreneurs and Economic Development Act or the SEED Act This bill requires lenders to refer applicants for certain small business loans to a resource partner if the applicant is determined ineligible for a loan under the program. Resource partners, such as small business development centers, provide informational tools and training to support business start-ups and existing business expansion. Lenders and the Small Business Administration must report on the number of resource partner referrals and the Government Accountability Office must periodically report on the rate of such referrals.