Northern Mariana Islands Small Business Access Act
- Bill Number
- H.R. 3496
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Passed House
- Latest Action
- 2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-06-11T00:41:21Z
AI-Generated Summary
Purpose
The Northern Mariana Islands Small Business Access Act (H.R. 3496) aims to expand access to federal small business microloans for the Commonwealth of the Northern Mariana Islands (CNMI), a U.S. territory in the Pacific, by including it in the existing Microloan Program under the Small Business Act. This program provides short-term loans (typically up to $50,000) to help startups and small businesses, often through nonprofit intermediaries.
Key Provisions
- Inclusion in Microloan Eligibility: Amends Section 7(m)(7)(B) of the Small Business Act (15 U.S.C. 636(m)(7)(B)) to explicitly add CNMI alongside other U.S. territories like Guam, making small businesses there eligible for microloans.
- Adjustment to Funding Allocation: Updates the program's funding distribution formula by changing the denominator from 1/55 to 1/56, ensuring the addition of CNMI does not disrupt allocations for other areas.
- Technical Correction: Modifies Section 7(m)(11)(C)(ii) of the Small Business Act by simplifying language related to rural designations, replacing outdated phrasing with "rural; and" to improve clarity without substantive change.
Significant Changes to Existing Law
- Prior to this act, the Microloan Program's eligibility language referenced territories like Guam but omitted CNMI, potentially excluding it from automatic participation.
- The formula change (1/55 to 1/56) formally incorporates CNMI into the nationwide allocation of program funds, which are distributed among states, territories, and other jurisdictions.
- The technical amendment streamlines statutory text but does not alter program operations.
Potential Impacts
- On Government Agencies: The U.S. Small Business Administration (SBA) will need to update its administration of the Microloan Program to include CNMI, potentially involving minor adjustments to funding distribution and oversight of local intermediaries. This could slightly reduce per-jurisdiction allocations elsewhere due to the formula tweak.
- On Citizens: Small business owners and entrepreneurs in CNMI gain access to affordable financing options, which may stimulate local economic growth, job creation, and business development in an area with limited banking resources.
- On International Relations: Minimal direct impact, as CNMI is a U.S. commonwealth; however, it reinforces U.S. economic support for its Pacific territories, potentially enhancing regional stability amid geopolitical interests in the area.
Main Stakeholders Affected
- Small Businesses in CNMI: Primary beneficiaries, as they can now apply for microloans to start or expand operations.
- SBA and Nonprofits: Intermediary organizations (e.g., community lenders) in or serving CNMI will handle loan distribution, while the SBA manages overall program compliance.
- CNMI Residents and Government: Local economy and territorial officials benefit from increased federal support, potentially aiding poverty reduction and economic diversification.
- Other U.S. Territories and States: Indirectly affected through the adjusted funding formula, though the change is proportional and unlikely to cause significant shifts.
Notable Legal, Constitutional, or Political Implications
- Legal: Ensures equal treatment under federal small business laws for CNMI, aligning it with other U.S. territories without requiring new regulations. The amendments are narrow and technical, minimizing litigation risks.
- Constitutional: Supports the U.S. Constitution's Territories Clause (Article IV, Section 3), which allows Congress to govern territories; this act extends economic aid consistently across insular areas.
- Political: Demonstrates bipartisan interest in supporting underserved U.S. territories (passed the House in 2026 and referred to Senate committee), potentially setting a precedent for including other remote areas in federal programs. No major controversies noted, as it addresses a gap in existing law without reallocating substantial funds.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Del. King-Hinds, Kimberlyn [R-MP-At Large]
Cosponsors (3)
Rep. Conaway, Herbert C. [D-NJ-3], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Goodlander, Maggie [D-NH-2]
Recent Actions
- 2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2026-01-20: Motion to reconsider laid on the table Agreed to without objection.
- 2026-01-20: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H929)
- 2026-01-20: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H929)
- 2026-01-20: DEBATE - The House proceeded with forty minutes of debate on H.R. 3496.
- 2026-01-20: Considered under suspension of the rules. (consideration: CR H929-930)
- 2026-01-20: Mr. Williams (TX) moved to suspend the rules and pass the bill, as amended.
- 2025-12-12: Placed on the Union Calendar, Calendar No. 350.
- 2025-12-12: Reported (Amended) by the Committee on Small Business. H. Rept. 119-402.
- 2025-12-12: Reported (Amended) by the Committee on Small Business. H. Rept. 119-402.
- 2025-11-18: Ordered to be Reported (Amended) by the Yeas and Nays: 27 - 0.
- 2025-11-18: Committee Consideration and Mark-up Session Held
- 2025-05-19: Referred to the House Committee on Small Business.
- 2025-05-19: Introduced in House
- 2025-05-19: Introduced in House
Bill Versions
- Northern Mariana Islands Small Business Access Act — issued 2026-01-20 — PDF (4 pages)
- Northern Mariana Islands Small Business Access Act — issued 2025-05-19 — PDF (2 pages)
- Northern Mariana Islands Small Business Access Act — issued 2026-01-26 — PDF (2 pages)
- Northern Mariana Islands Small Business Access Act — issued 2025-12-12 — PDF (4 pages)