SEED Act
Bill: H.R.7971 | Sponsor: Rep. Sánchez, Linda T. (D-CA)
Policy area: Commerce

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.

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting Entrepreneurs and 
Economic Development Act'' or the ``SEED Act''.

SEC. 2. RESOURCE PARTNER REFERRALS.

    (a) 7(a) Loans.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following new paragraph:
            ``(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)) (relating to Additional requirements for 7(b) 
loans) is amended by adding at the end the following new paragraph:
            ``(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)) is amended by adding at the end the following new 
subparagraph:
                    ``(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) is amended by 
adding at the end the following new paragraph:
            ``(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)) authorized to make loans by the 
        Administrator of the Small Business Administration shall submit 
        to the Administrator an annual report detailing referrals made 
        by such lender or development company pursuant to a covered 
        provision, as applicable.
            (2) Administrator reports.--Section 10 of the Small 
        Business Act (15 U.S.C. 639) is amended by adding at the end 
        the following new subsection:
    ``(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' means sections 7(a)(38), 7(f)(2), 
        7(m)(6)(F), and section 502(8) of the Small Business Investment 
        Act of 1958.''.
    (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'' has the meaning given in section 5004 of the 
                American Rescue Plan Act of 2021 (15 U.S.C. 9013).
                    (B) Covered provision.--The term ``covered 
                provision'' means--
                            (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.), as added by this Act; and
                            (ii) section 502(8) of the Small Business 
                        Investment Act of 1958 (15 U.S.C. 696), as 
                        added by this Act.
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