SEED Act

Bill: 117-hr-7971
Sponsor: full_name: Rep. Sánchez, Linda T. [D-CA-38]
Introduced: 2022-06-07
Policy area: Commerce
Latest action: action_date: 2022-06-07
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2022-06-07
action_desc: Introduced in House
text: <p><strong>Supporting Entrepreneurs and Economic Development Act or the SEED Act</strong></p> <p>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.</p> <p>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.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7971 IN THE HOUSE OF REPRESENTATIVES June 7, 2022 Ms. Sánchez (for herself, Mr. Lowenthal , Ms. Porter , Mrs. Napolitano , Ms. Bass , Ms. Chu , Ms. Roybal-Allard , Mr. Lieu , Mr. Vargas , Ms. Norton , Mrs. Cherfilus-McCormick , Ms. Brown of Ohio , and Mrs. Torres of California ) introduced the following bill; which was referred to the Committee on Small Business A BILL 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 or the SEED Act . 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.