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House Small Business Committee advances seven bills to boost SBA lending, AI training and red-tape hotline
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Summary
The House Small Business Committee on March 10 advanced seven bipartisan bills to the full House, including measures to align SBA 504 loan equity rules with Main Street needs, expand microloan eligibility to the Northern Mariana Islands, build AI training through SBDCs, strengthen employee-ownership outreach, and codify the SBA Office of Advocacy red-tape hotline. Most bills passed unanimously in committee; the Dump Red Tape Act passed 18–9 after extended amendment votes.
WASHINGTON — The House Committee on Small Business on March 10 voted to report seven bipartisan measures to the full House, advancing legislation aimed at expanding access to capital, directing federal support for small-business adoption of artificial intelligence, strengthening outreach for employee ownership, and codifying an SBA hot line for regulatory complaints.
Chairman Williams opened the markup saying, "Today, we will mark up 7 important bills that support small business across the country," and framed the package as bipartisan steps to "equip entrepreneurs with the tools they need to innovate, grow, and compete." Ranking Member Nydia Velasquez said she planned "to lend my support to the 6 bipartisan bills under consideration, and I will lay out my concerns with the last bill."
The committee approved the Main Street Parity Act (H.R. 5763), a bill the sponsors said would lower the extra equity requirement for SBA 504 loans on "special purpose" properties — examples cited included bowling alleys, car washes and marinas — from 15% to 10% so those borrowers face the same down-payment rules as other small businesses. "The Main Street Parity Act lowers the equity requirement for these borrowers to the same 10% required for everyone else," Representative Simone said in support of the bill. The measure was agreed to in committee and later recorded 27–0 in the roll-call vote.
Lawmakers also advanced the 504 Program Risk Oversight Act (H.R. 5788), which would require the Small Business Administration to produce an annual risk assessment and public report on the 504 (CDC) loan program. Sponsor Representative Tran said the requirement is intended to give Congress timely data "to ensure that taxpayer dollars are protected" and to monitor program health as loan limits are reconsidered. The committee agreed to report the bill favorably (recorded 27–0).
The committee unanimously approved H.R. 3496 to include the Commonwealth of the Northern Mariana Islands in the SBA microloan program. Delegate King Hines said the microloan program issues small-dollar loans that help entrepreneurs who otherwise might lack access to capital; the substitute amendment at the desk was adopted and the bill was ordered favorably (27–0 recorded).
Two separate bills to help small businesses adopt artificial intelligence tools also cleared the committee. The AI for Main Street Act (H.R. 5764) would direct Small Business Development Centers to provide guidance, training and outreach for AI adoption; Representative Alford said "the AI revolution... is already here." The AIWISE Act (H.R. 5784) would require SBA e-learning and coordination with the National Institute of Standards and Technology to create AI literacy resources for small employers. Both measures were agreed to and are scheduled to be reported favorably (each recorded 27–0).
The committee also advanced the Improving SBA Engagement on Employee Ownership Act (H.R. 5778), a measure sponsors said would require the SBA to step up outreach and technical assistance for employee ownership models such as ESOPs and cooperatives. Representative MacIver called employee ownership "one of the most powerful tools we have to help working people build real wealth." The bill was ordered favorably (27–0).
The most contested measure was H.R. 4305, the "Dump Red Tape Act," which would codify the SBA Office of Advocacy's red-tape hotline and require annual reporting to Congress on burdensome regulations identified through the hotline. Sponsor Representative Weed said the bill would "codify the SBA's red tape hotline" and produce annual reports detailing the most burdensome regulations. Opponents including Ranking Member Velasquez questioned the need for a separate hotline and expressed concern about duplication and insufficient public information on the hotline's submissions. Representative Cisneros offered an amendment to broaden reporting and allow submissions on tariffs and other executive actions; that amendment failed on a recorded vote, 12–15. A second amendment offered by Representative Scholten also failed on a recorded vote, 12–15. The substitute and final amended bill was adopted by committee on a roll-call of 18–9.
Votes at a glance: H.R. 5763 Main Street Parity Act — agreed to in committee; recorded vote 27–0. H.R. 5788 504 Program Risk Oversight Act — agreed to; recorded vote 27–0. H.R. 3496 Northern Mariana Islands Small Business Access Act (as amended) — agreed to; recorded vote 27–0. H.R. 5764 AI for Main Street Act (as amended) — agreed to; recorded vote 27–0. H.R. 5784 AIWISE Act — agreed to; recorded vote 27–0. H.R. 5778 Improving SBA Engagement on Employee Ownership Act — agreed to; recorded vote 27–0. H.R. 4305 Dump Red Tape Act (as amended) — adopted; recorded vote 18–9.
Members noted that several roll-call votes were postponed during the markup and later completed when the committee returned from recess. Chairman Williams authorized committee staff to make technical, conforming changes and said members have two business days to file additional supplemental or minority views. The committee adjourned after completing the votes.
What’s next: Each reported bill will appear on the House schedule or be included in a legislative package according to House rules; sponsors and committee leaders said they will continue to work across the aisle to move the measures to floor consideration.
