Build Back Better Act Passes the House with Small Business Benefit Programs Slashed

On November 6, 2021, the bipartisan Build Back Better Act (the “Act”) was passed by the House. Implementation of the bill comes after significant cuts were made to the bill—including programs previously alleged to benefit small businesses through the Small Business Administration (SBA) as outlined below.  

Direct Lending Program

Early proposals of the Act included an investment of “$2.746 billion to establish a direct lending subprogram under the 504/CDC lending program to allow a [Certified Development Company (CDC)] to make loans to small contractors, small manufacturers, and small businesses in underrepresented markets.”

However, under the current version of the Act, there is no mention of the direct lending program.

7(a) Loan Program

That same proposal included an investment of “$4.465 billion to fund a direct loan product under the current 7(a) lending program administered by the SBA and $600 million to enhance, improve, and expand the 7(a) Community Advantage program.”

Under the current version of the Act, there is no mention of this funding.