S4534Referred to Committee

Microbusiness Support Act

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2026-05-14
Introduced
1
Cosponsors
S
ⓘ
Type

Sponsor

Catherine Cortez Masto
Catherine Cortez Masto
Democrat · NV · Senator
Votes with party: 78.8% (841 recorded votes)

Full profile: /officials/C001113

Source: Congress.gov · FEC

Cosponsors (1)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Small Business and Entrepreneurship.

2026-05-14

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

The Small Business Administration would create a new direct lending program to provide loans directly to very small businesses and startups that might struggle to get financing from traditional banks. This would help entrepreneurs and microbusiness owners access the capital they need to start or grow their operations without having to go through conventional lenders. The program would expand access to funding for small business owners who currently have limited borrowing options.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Subjects

Commerce

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4534 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4534 To amend the Small Business Act to establish a direct loan program for microbusinesses at the Small Business Administration, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES May 14, 2026 Ms. Cortez Masto (for herself and Ms. Alsobrooks) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship _______________________________________________________________________ A BILL To amend the Small Business Act to establish a direct loan program for microbusinesses at the Small Business Administration, 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 ``Microbusiness Support Act''. SEC. 2. DIRECT LOAN PROGRAM FOR MICROBUSINESSES. Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following: ``(38) Microbusiness loan program.-- ``(A) Definition.-- ``(i) In general.--In this paragraph, the term `microbusiness' means an independently owned and operated for-profit business entity that-- ``(I) employs not more than 10 full-time employees, determined on a full-time equivalent basis; and ``(II) has annual revenue of not more than the lesser of-- ``(aa) $5,000,000; or ``(bb) the size standard in dollars, if any, for the North American Industry Classification System code assigned to the business entity for the business entity to qualify as a small business concern. ``(ii) Full-time.--For purposes of clause (i), the term `full-time' means that an individual-- ``(I) is employed for consideration for not less than 35 hours each week; or ``(II) renders any other standard of service generally accepted by custom or specified by contract as full-time employment. ``(iii) Verification.--The Administrator may request from a business entity such documentation as may be necessary to establish that the business entity qualifies as a microbusiness under this subparagraph. ``(B) Authority.--The Administrator is authorized to originate and disburse direct loans, including through partnerships with third parties, to microbusinesses under this subsection. ``(C) Maximum amount.--The maximum amount of a loan made under this paragraph to a microbusiness is $100,000. ``(D) Fees.--With respect to each loan made under this paragraph, the Administrator, an authorized third party, or an agent may-- ``(i) impose, collect, retain, and utilize fees, which may be charged to the borrower, to cover any costs associated with referring applications or originating, making, underwriting, disbursing, closing, servicing, or liquidating the loan, including any direct lending agent costs, other program or contract costs, or other agent administrative expenses; ``(ii) impose, collect, retain, and utilize fees (including unused fees and draw fees), which may be charged to the borrower on loans for revolving lines of credit; and ``(iii) pay third parties, including direct lending agents and financial institutions, with which the Administration partners for assistance in referring applicants or promoting, originating, making, underwriting, disbursing, closing, servicing, or liquidating loans in accordance with this paragraph on behalf of the Administration. ``(E) Terms.-- ``(i) In general.--Not later than 90 days after the date of enactment of this paragraph, the Administrator shall issue interim final rules and revise any relevant rules to establish the terms and conditions for a direct loan made under this paragraph, including with respect to repayment, underwriting criteria, interest rate, maturity, and other terms. ``(ii) Interest rate.--The interest rate for a loan made under this paragraph shall be in accordance with paragraph (4)(A), except `6 percent per annum' shall be substituted for `1 percent per annum'.''. <all>
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