Bill Overview
Title: Blockchain Solutions for Small Businesses Act
Description: This bill requires the Small Business Administration to study the current and potential uses of blockchain technology (i.e., the technology that supports digital currencies such as Bitcoin) in making loans to qualified small businesses.
Sponsors: Rep. Salazar, Maria Elvira [R-FL-27]
Target Audience
Population: Small business owners and their employees
Estimated Size: 30000000
- The bill is centered around blockchain technology, which is a new and emerging field in digital technology and finance.
- Small businesses are heavily emphasized as the direct users of this new loan system being studied.
- Blockchain technology's potential can improve the efficiency and security of transactions, which is beneficial for small businesses that typically have less access to sophisticated financial systems.
- The legislation seems to be focused globally as blockchain technology is a global phenomenon and not restricted by geographic boundaries.
- Potential impacts could be broader considering the rapid adoption and scale of blockchain solutions worldwide.
Reasoning
- Small businesses make up a substantial part of the U.S. economy, and the policy focuses on improving their access to loans.
- A significant portion of small business owners might not fully comprehend blockchain technology, which could lead to initial apprehension or misunderstanding.
- The budget constraints imply that the policy primarily focuses on research and initial implementations, hinting at a gradual rollout.
- The policy's impact may initially be low to medium, as it targets enabling smoother financial transactions over the long term.
- While a large number of businesses may eventually benefit, the practical and immediate impact might be limited to subsets that engage early.
Simulated Interviews
Restaurant Owner (Austin, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm hopeful that any technology streamlining loan applications would be beneficial.
- Blockchain sounds complicated, but if it helps my business, I'm open to it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Tech Startup Founder (San Francisco, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This policy could open a lot of doors for tech startups if implemented correctly.
- Being in the blockchain space, I'm excited to see how SBA handles it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Retail Store Owner (Columbus, OH)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- I'm not sure how blockchain works, but anything new that helps would be welcome.
- Will this mean more paperwork or less? I'm concerned about learning new things.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Software Development Company Owner (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 3/20
Statement of Opinion:
- Integrating blockchain could streamline operations greatly for businesses like mine.
- The potential of having better loan platforms sounds promising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Real Estate Developer (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- Blockchain is another tech buzzword; I need to see real benefits.
- I'm cautious about adopting something new for my business finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Accounting Firm Owner (Miami, FL)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Blockchain can be advantageous, but only if implemented correctly by SBA.
- It could potentially save my clients money and time in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
E-commerce Store Owner (Portland, OR)
Age: 26 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- Blockchain could streamline transactions for my business; sounds interesting.
- I hope it's not too technical to get started with.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Restaurant Chain Owner (Chicago, IL)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 2/20
Statement of Opinion:
- If blockchain can make loan processes easier, I'm for it.
- I need more information before supporting it fully.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Automotive Parts Manufacturer Owner (Detroit, MI)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- I'm set in my ways; blockchain seems like unnecessary complexity.
- Unless proven to reduce costs, not interested.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Freelance Graphic Designer (Denver, CO)
Age: 33 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- This sounds like it could benefit my clients, which in turn helps my business.
- More efficient transaction systems are always a plus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $4000000 (Low: $3000000, High: $5000000)
Year 3: $4000000 (Low: $3000000, High: $5000000)
Year 5: $2000000 (Low: $1000000, High: $3000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The potential broad-scale and rapid adoption of blockchain technology across the financial sector.
- Small businesses form a critical backbone in the U.S. economy, totaling around 30 million, thus scaling implications could be substantial.
- Blockchain security benefits might lead to lower costs of fraud and compliance in loan operations.