Small Business Energy Loan Enhancement Act

Bill Number

H.R. 2831

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-04-10: Referred to the House Committee on Small Business.

Last Updated

2025-12-19T09:08:01Z

AI-Generated Summary

Purpose

The Small Business Energy Loan Enhancement Act (H.R. 2831) aims to support small businesses, particularly in energy-related sectors, by increasing the maximum amounts available for certain federal loans guaranteed by the Small Business Administration (SBA). This helps these businesses access more capital for growth and operations.

Key Provisions

• Loan Amount Increases: Amends Section 502(2)(A) of the Small Business Investment Act of 1958 to raise the maximum loan guarantee limits from $5,500,000 to $10,000,000 for two specific categories of loans (clauses (iv) and (v)), which typically apply to energy conservation, renewable energy, or pollution control projects.
• Reporting Requirement: The SBA Administrator must submit an annual report to Congress, starting one year after enactment, detailing the industries and geographic areas where loans under these amended clauses were issued during the reporting period.

Significant Changes to Existing Law

• Doubles the maximum loan amounts for the targeted energy-related loans, allowing the SBA to guarantee larger loans without needing further legislative approval for these categories.
• Introduces a new mandatory annual reporting obligation on loan distribution, which did not previously exist for these specific clauses, to promote transparency and oversight.

Potential Impacts

• On Government Agencies: The SBA may handle larger loan volumes, potentially increasing administrative workload and risk exposure, but the reporting requirement could improve accountability and data-driven decision-making for future policy.
• On Citizens: Small business owners in energy sectors (e.g., solar, wind, or efficiency projects) gain access to up to twice the previous funding, potentially boosting job creation, innovation, and local economies in underserved areas.
• On International Relations: Minimal direct impact, though enhanced U.S. small business support in clean energy could indirectly strengthen the country's position in global sustainability efforts.

Main Stakeholders Affected

• Small Businesses: Primary beneficiaries, especially those in energy conservation, renewable resources, or environmental improvement industries, who can now secure larger loans for expansion.
• Small Business Administration (SBA): Responsible for implementing the changes and producing reports, affecting its lending operations and budgeting.
• Congress: Receives annual reports to monitor program effectiveness, influencing future funding and policy adjustments.
• Local Communities: Indirectly impacted through economic development in regions where these loans are concentrated, as identified in reports.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens the SBA's role under the Small Business Investment Act without altering broader constitutional frameworks, but the increased loan caps could raise questions about federal financial risk if defaults rise (though guarantees mitigate some exposure).
• Constitutional: Aligns with Congress's enumerated power to regulate interstate commerce by promoting small business viability, with no apparent conflicts.
• Political: Bipartisan sponsorship (from 28 representatives across parties) signals broad support for energy sector aid; the reporting provision adds oversight to prevent misuse, potentially appealing to fiscal conservatives while advancing environmental goals for progressives. No major controversies evident in the bill text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Crow, Jason [D-CO-6]

Cosponsors (42)

Rep. Bacon, Don [R-NE-2], Rep. Beatty, Joyce [D-OH-3], Rep. Carson, André [D-IN-7], Rep. Case, Ed [D-HI-1], Rep. Casten, Sean [D-IL-6], Rep. Castor, Kathy [D-FL-14], Rep. Craig, Angie [D-MN-2], Rep. Davids, Sharice [D-KS-3], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Foster, Bill [D-IL-11], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Houlahan, Chrissy [D-PA-6], Rep. Kim, Young [R-CA-40], Rep. Landsman, Greg [D-OH-1], Rep. Lieu, Ted [D-CA-36], Rep. Mullin, Kevin [D-CA-15], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Obernolte, Jay [R-CA-23], Rep. Panetta, Jimmy [D-CA-19], Rep. Peters, Scott H. [D-CA-50], Rep. Pettersen, Brittany [D-CO-7], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Scholten, Hillary J. [D-MI-3], Rep. Schrier, Kim [D-WA-8], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Tokuda, Jill N. [D-HI-2], Rep. Veasey, Marc A. [D-TX-33], Rep. Johnson, Julie [D-TX-32], Rep. Smith, Adam [D-WA-9], Rep. Riley, Josh [D-NY-19], Rep. Evans, Dwight [D-PA-3], Rep. Davis, Donald G. [D-NC-1], Rep. Ross, Deborah K. [D-NC-2], Rep. Latimer, George [D-NY-16], Rep. Salinas, Andrea [D-OR-6], Rep. Morelle, Joseph D. [D-NY-25], Rep. Sorensen, Eric [D-IL-17], Rep. Gottheimer, Josh [D-NJ-5], Rep. Moulton, Seth [D-MA-6], Rep. Mrvan, Frank J. [D-IN-1], Rep. McBride, Sarah [D-DE-At Large], Rep. Bresnahan, Robert P. [R-PA-8]

Recent Actions

• 2025-04-10: Referred to the House Committee on Small Business.
• 2025-04-10: Introduced in House
• 2025-04-10: Introduced in House

Bill Versions

• Small Business Energy Loan Enhancement Act — issued 2025-04-10 — PDF (2 pages)