Congressman Morgan McGarvey Introduces Bill to Expand Access to Capital for Small Business Owners
WASHINGTON, D.C. (November 28, 2023) – Today, Congressman Morgan McGarvey (KY-03) and Congressman Mark Alford (MO-04) introduced the Supporting Community Lenders Act, a bill which expands access to capital for underserved small business owners. The bill would establish a dedicated position within the Small Business Administration to support and advocate on behalf of community lenders – Community Development Financial Institutions (CDFIs), Community Development Corporations (CDCs), Microloan Intermediaries, and Minority Development Institutions (MDIs).
“Every American deserves a chance to start a business and achieve the American dream,” said Rep. McGarvey. “But too many entrepreneurs, particularly those from underserved communities and backgrounds, struggle to access critical capital when they start or grow their businesses. I’m proud to introduce this bipartisan bill that will make it easier to create small businesses across our country. I’ll continue working with my colleagues to create equal opportunity for everyone, so that anyone who wants to be a small business owner can do just that — regardless of their race, ethnicity, or zip code.”
As it currently stands, Community Development Financial Institutions (CDFIs), Community Development Corporations (CDCs), Microloan Intermediaries, and Minority Development Institutions (MDIs) do not have a designated advocate within the federal government. As a result, these institutions and those they serve often struggle to navigate the federal bureaucracy and take advantage of capital access programs and other federal assistance.
The Coordinator for Community Financial Institutions would be tasked with advocating for community lenders across federal agencies, providing support and education, and connecting these institutions to SBA’s capital access programs. Community lenders support veterans, rural Americans, and other traditionally underserved groups, and creating a position at SBA to support these lenders will increase their effectiveness and ensure every American benefits from critical federal programs.
“Capital access is a priority for small businesses—they need capital to survive. In Missouri’s Fourth Congressional District, this can be a challenge because we have banking deserts,” said Rep. Alford. “CDFIs, like those in our district, help keep the American Dream alive by providing capital to entrepreneurs in rural America. Too often, I am told in Committee hearings that constituents do not know the resources available to them. This legislation will make sure CDFIs and the small businesses they benefit are properly supported and know what resources they can access.”
“The Supporting Community Lenders Act is a great opportunity to integrate mission-focused CDFI and MDI banks into SBA’s outreach and servicing of small businesses in underserved, low income and minority communities,” said Brian Blake, Chief Public Policy Officer, Community Development Bankers Association. “The capital gap for these businesses is acute. The members of the Community Development Bankers Association thank Representatives McGarvey and Alford for introducing this important legislation on the House side.”
Text of the bill can be found here.
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