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 Com-
mittee on Small Business, and in addition to the Committee on Agri-
culture, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Small Business Act to address the participa-
tion of cooperatives in the program carried out under 
section 7(a) of that Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Capital for Coopera-
tives Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) Cooperative businesses operate on the basis 
of 1 member, 1 vote. 
(2) Cooperatives have helped to improve the 
economic conditions of the people of the United 
States for more than a century by increasing com-
petition and helping small players gain parity in the 
market. 
(3) Research has shown that cooperatives are 
more resilient to economic business cycles than other 
business models because cooperatives require mem-
ber-owners of the cooperative to work together and 
prepare for the future. 
(4) The mission of the Small Business Adminis-
tration (referred to in this Act as the ‘‘Administra-
tion’’) is to help the people of the United States 
start, build, and grow businesses. 
(5) The requirement of the Administration that 
some borrowers provide a personal guarantee with 
respect to certain Administration loans has pre-
vented cooperatives from accessing the safe and af-
fordable financing available from the Administration. 
SEC. 3. COOPERATIVES. 
(a) IN GENERAL.—Section 7(a)(15)(B)(iv) of the 
Small Business Act (15 U.S.C. 636(a)(15)(B)(iv)) is 
amended— 
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(1) in the matter preceding subclause (I), by 
striking ‘‘, or to a cooperative in accordance with 
paragraph (35)’’; and 
(2) in subclause (I), by striking ‘‘or coopera-
tive’’. 
(b) SBA RESPONSIBILITIES.— 
(1) DEFINITIONS.—In this subsection: 
(A) ADMINISTRATOR.—The term ‘‘Admin-
istrator’’ means the Administrator of the Ad-
ministration. 
(B) COOPERATIVE.—The term ‘‘coopera-
tive’’ has the meaning given the term in section 
7(a)(35) of the Small Business Act (15 U.S.C. 
636(a)(35)). 
(C) PROGRAM.—The term ‘‘Program’’ 
means the program carried out under section 
7(a) of the Small Business Act (15 U.S.C. 
636(a)). 
(D) SMALL
BUSINESS
CONCERN.—The 
term ‘‘small business concern’’ has the meaning 
given the term in section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)). 
(E) WORKING GROUP.—The term ‘‘Work-
ing Group’’ means the interagency working 
group coordinated and chaired by the Secretary 
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of Agriculture pursuant to section 310B(e)(12) 
of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1932(e)(12)), as amended 
by subsection (c). 
(2) COORDINATION; AMENDMENTS TO RULES; 
REPORT.—The Administrator shall— 
(A) beginning not later than 60 days after 
the date of enactment of this Act, coordinate 
and participate with the Working Group to— 
(i) develop recommendations regard-
ing how the Administrator can coordinate 
with the heads of other Federal agencies to 
promote, support, and increase the number 
of cooperatives; and 
(ii) ensure coordination between the 
Administrator and— 
(I) other Federal agencies; and 
(II) national and local organiza-
tions representing cooperatives and 
small business concerns; 
(B) not later than 180 days after the date 
of enactment of this Act— 
(i) amend the rules of the Administra-
tion with respect to guarantees for loans 
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made to cooperatives under the Program, 
which may include— 
(I) requiring the Administrator 
to guarantee a loan made to a cooper-
ative under the Program if the lender 
with respect to the loan can dem-
onstrate that the cooperative is able to 
repay the loan; and 
(II) establishing lending criteria 
for cooperatives under the Program 
that are not based on personal or en-
tity guarantees provided by the mem-
ber-owners of the cooperative; and 
(ii) submit to Congress a report docu-
menting the amendments made under 
clause (i); and 
(C) not later than 1 year after the date of 
enactment of this Act, submit to Congress a re-
port regarding— 
(i) education regarding cooperatives 
that the Administrator has provided to— 
(I) officials of the Administra-
tion; 
(II) lenders participating in the 
Program; and 
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(III) small business development 
centers described in section 21 of the 
Small Business Act (15 U.S.C. 648); 
and 
(ii) during the period beginning on the 
date of enactment of this Act and ending 
on the date on which the report is sub-
mitted— 
(I) the number of applications 
submitted by cooperatives for loans 
under the Program; and 
(II) the number of applications 
received under subclause (I) that were 
approved by the Administrator. 
(c) INTERAGENCY WORKING GROUP ON COOPERA-
TIVE DEVELOPMENT.—Section 310B(e)(12) of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1932(e)(12)) is amended— 
(1) by striking ‘‘Not later’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Not later’’; and 
(2) by adding at the end the following: 
‘‘(B) MEETINGS.—The interagency work-
ing group described in subparagraph (A)— 
‘‘(i) shall meet— 
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‘‘(I) at such times determined 
necessary by the Secretary; and 
‘‘(II) not less frequently than bi-
annually; and 
‘‘(ii) may conduct meetings in person 
or through the use of electronic re-
sources.’’. 
Æ 
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