Bill Overview
Title: IMPROVE the SBA Act
Description: This bill makes various changes to the Small Business Administration's (SBA) programs and operations, including prohibiting the SBA from making direct loans under the 7(a) Program and requiring annual appearances before Congress to provide information about the effectiveness of specified SBA programs. The bill also prohibits the SBA from providing assistance under its programs to certain organizations, including (1) entities primarily engaged in lobbying, (2) entities established to conduct public policy research or advocacy, and (3) the Planned Parenthood Federation of America Inc. or its affiliates.
Sponsors: Rep. Luetkemeyer, Blaine [R-MO-3]
Target Audience
Population: Small business owners and employees influencing associated stakeholders
Estimated Size: 65000000
- The bill affects the Small Business Administration (SBA), which is an agency that supports small businesses through loans and assistance.
- Small businesses make up a significant portion of businesses in the United States and globally, influencing vast numbers of employees, owners, and associated stakeholders.
- The prohibition of the SBA from making direct loans under the 7(a) Program will directly affect small businesses that might use these loans for their growth and development.
- Prohibiting assistance to entities engaged in lobbying, policy research, and advocacy could indirectly affect those working in such organizations and their benefit from SBA programs.
- Planned Parenthood and its affiliates are specifically mentioned as excluded from SBA programs, which could impact the services and operations they provide, although this might not directly affect small businesses.
Reasoning
- The policy affects small business owners and employees by altering the support provided by the SBA, which is a key source of loans and assistance for small businesses.
- By prohibiting direct loans, the policy may limit financial resources for small businesses during times when external capital is necessary.
- Entities that rely on the SBA for lobbying or advocacy might see a decrease in support, which could indirectly affect their operations.
- Many small businesses rely on SBA loans to maintain or expand their operations, so changes to the 7(a) Program will have noticeable effects.
- The policy specifically excludes Planned Parenthood, which, although not directly associated with small businesses, shows the targeted nature of this bill and its restrictions.
- Given the large number of small businesses in the U.S., the policy might have a widespread but varied impact, with some experiencing strong effects and others remaining unaffected.
- The $25 million budget constraint in year 1 suggests a focus on revising current structures rather than dramatically increasing resources or staffing at the outset.
- The targeting towards U.S. citizens ensures that the policy will mainly materialize effects within the U.S., particularly among small business circuits.
Simulated Interviews
Small Business Owner (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- This policy makes me nervous because we relied heavily on a 7(a) loan to expand.
- I'm concerned about future growth opportunities without direct SBA loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
SBA Loan Officer (Denver, CO)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- The change in policy directly affects the services I provide and might reduce clients seeking SBA loans.
- However, more accountability might streamline and improve existing operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Public Policy Researcher (Miami, FL)
Age: 47 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- My organization won't receive SBA support due to our research and advocacy focus.
- We may need to seek alternative funding sources to continue our efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Financial Analyst (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- This might be a setback for new startups needing capital assistance from SBA funding.
- I have to alter advising strategies to accommodate the changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Owner of a Lobbying Firm (Dallas, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The exclusion of lobbying groups means less formal support from SBA, necessitating adaptations.
- We're uncertain how this will reshape our influence on small business policy to date.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 6 | 8 |
HR Manager at Small Tech Startup (Chicago, IL)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- Our growth relied on support facilitated through the SBA loans, so this is a big shift.
- Employee futures might involve more uncertainty due to funding changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 6 |
| Year 2 | 4 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
Tech Entrepreneur (San Francisco, CA)
Age: 27 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Uncertainty about accessing traditional financing is troubling.
- Need to explore more non-SBA funding strategies, which could affect focus and development.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 9 |
| Year 10 | 7 | 9 |
| Year 20 | 7 | 9 |
Retired (Phoenix, AZ)
Age: 63 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I hope the changes bring accountability and better management for future business owners.
- Not directly impacted now, but recall the pivotal role of SBA support in my business.
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 |
Non-Profit Director (Atlanta, GA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- We might see a shift in partnerships as some entities fall outside SBA support.
- Potential to focus on new strategy engagements to fill any gaps.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Analyst at a Policy Think Tank (Boston, MA)
Age: 51 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- This focuses our research on non-SBA funding impacts.
- While not cut off, we miss potential collaborations on data and findings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $25000000 (Low: $15000000, High: $35000000)
Year 2: $25000000 (Low: $15000000, High: $35000000)
Year 3: $25000000 (Low: $15000000, High: $35000000)
Year 5: $25000000 (Low: $15000000, High: $35000000)
Year 10: $25000000 (Low: $15000000, High: $35000000)
Year 100: $25000000 (Low: $15000000, High: $35000000)
Key Considerations
- The SBA's operational changes affect not only direct support to small businesses but could also impact broader economic metrics like GDP and tax revenues.
- Estimates for savings and costs are heavily dependent on the scale of loan prohibitions and assistance restrictions to specific organizations.
- Economic impacts could vary as small businesses adapt to changes in available resources and financing avenues.