Microbusiness Support Act
- Bill Number
- S. 4534
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-05-14: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-05-29T15:33:26Z
AI-Generated Summary
Summary of S. 4534: Microbusiness Support Act
Purpose
This legislation amends the Small Business Act to establish a direct loan program at the Small Business Administration (SBA) specifically for microbusinesses, aiming to provide financial support through direct lending.
Key Provisions
- Definition of Microbusiness: A microbusiness is defined as an independently owned for-profit entity with no more than 10 full-time employees (on a full-time equivalent basis) and annual revenue not exceeding the lesser of $5,000,000 or the applicable size standard under the North American Industry Classification System (NAICS) code. The SBA may request documentation to verify eligibility.
- Loan Authority: The SBA Administrator is authorized to originate and disburse direct loans to microbusinesses, including through partnerships with third parties.
- Loan Limits: The maximum loan amount is $100,000.
- Fees and Costs: The Administrator or authorized third parties may charge and retain fees to cover costs related to application referral, origination, underwriting, disbursement, servicing, and liquidation. This includes fees for revolving lines of credit and payments to partner entities.
- Terms and Conditions: The Administrator must issue interim final rules within 90 days to set terms including repayment, underwriting, interest rates, and maturity. The interest rate follows existing rules under Section 7(a)(4)(A) but substitutes 6 percent per annum for the standard 1 percent.
Significant Changes to Existing Law
- Adds a new paragraph (38) to Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), introducing direct lending authority for microbusinesses where the existing framework primarily focuses on loan guarantees.
- Establishes specific eligibility criteria, loan caps, and fee structures tailored to microbusinesses, which were not previously outlined in this section.
Potential Impacts
- On Government Agencies: Expands the SBA's role to include direct loan origination and management, potentially requiring new administrative processes, partnerships, and rulemaking.
- On Citizens: Provides access to loans up to $100,000 for qualifying small-scale businesses, which could support operations for entities with limited employees and revenue.
- On International Relations: No direct provisions or impacts are addressed in the legislation.
Main Stakeholders
- The Small Business Administration, as the implementing agency.
- Owners of microbusinesses meeting the size and revenue criteria.
- Third-party partners, such as financial institutions or agents involved in loan referral, origination, and servicing.
Notable Legal, Constitutional, or Political Implications
- The bill grants the SBA explicit authority to make direct loans, which may involve administrative rulemaking and potential oversight by Congress on program implementation.
- It focuses on domestic small business support without altering broader constitutional authorities or international obligations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Cortez Masto, Catherine [D-NV]
Cosponsors (1)
Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2026-05-14: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2026-05-14: Introduced in Senate
Bill Versions
- Microbusiness Support Act — issued 2026-05-14 — PDF (5 pages)