Bill Overview
Title: American Small Business Competition Act of 2022
Description: This bill increases the maximum loan amounts available for small businesses principally engaged in the research, development, manufacturing, or production of certain technologies. It also requires the Small Business Administration to report about the effect of inflation and supply chain disruption on the cost to small businesses of accessing capital.
Sponsors: Rep. Fitzgerald, Scott [R-WI-5]
Target Audience
Population: Small business owners in the technology, research, development, and manufacturing sectors
Estimated Size: 150000
- The bill targets small businesses engaged in specific sectors such as research, development, manufacturing, or technology production.
- There are millions of small businesses in the United States, but the bill's provisions mainly apply to those involved in technology and innovation, narrowing the scope.
- The Small Business Administration, which facilitates these loans, focuses on supporting U.S.-based small businesses.
- Globally, small businesses in technology and manufacturing sectors exist, but the direct impact of funding changes by U.S. laws is likely limited to potential competitive shifts rather than direct financial impact.
Reasoning
- The policy focuses on boosting small businesses especially in technological and manufacturing sectors by increasing available loan amounts.
- Considering there are around 150,000 businesses likely targeted in the US, the allocated budget suggests a significant but limited impact, benefiting only a portion of eligible businesses due to financial limits.
- Not all businesses will perceive high impacts due to variances in sector relevance and existing financial stability.
- By simulating interviews, we can represent a range of individuals from well-established business owners to those just starting out in technology sectors, covering a broad spectrum of local and economical standings.
Simulated Interviews
CEO of a small tech startup (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The increased loan amounts are a potential game-changer, especially as we look to scale our operations.
- Inflation and supply chain issues have been a concern, as they impact our costs significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Owner of a manufacturing business (San Francisco, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- The policy provides a cushion against inflationary pressures and the difficulties in securing loans.
- It could allow us to hire more staff and increase production capacity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Research Director at a small biotech firm (Raleigh, NC)
Age: 53 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.5 years
Commonness: 9/20
Statement of Opinion:
- The potential for higher loans means we can continue our R&D without delays.
- It's crucial as inflation had started to eat into our available resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Co-founder of a tech hardware startup (Seattle, WA)
Age: 29 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- This policy could be crucial in acquiring our first significant funding to push our development further.
- Costs have been rising, making it difficult for startups like ours.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 8 | 2 |
| Year 5 | 9 | 1 |
| Year 10 | 7 | 1 |
| Year 20 | 6 | 1 |
Engineering consultant (Salt Lake City, UT)
Age: 38 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- The policy should provide relief to my clients, hopefully boosting their revenues and my consulting work as well.
- I'm optimistic but concern remains on how accessible the loans will be across different business scales.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Owner of a small local manufacturing company (Des Moines, IA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- The policy is well-intentioned, but I am skeptical about its real impact given the complexities of getting approved for loans.
- There's been little change in banking relationships despite policy announcements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Owner of a research consultancy firm (Boston, MA)
Age: 51 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- The policy could encourage my tech clients to expand more aggressively.
- If successful, firm growth could reflect beneficially in consultancy requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 6 | 5 |
Software developer at a startup (New York, NY)
Age: 26 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Increased funding is critical, this could mean potentially saving jobs at my company.
- Every day has been a struggle with budget reductions limiting project scope.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 8 | 3 |
| Year 5 | 8 | 3 |
| Year 10 | 6 | 2 |
| Year 20 | 6 | 2 |
Entrepreneur in biotechnological advancements (Chicago, IL)
Age: 41 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.5 years
Commonness: 7/20
Statement of Opinion:
- The assistance from elevated loan allowances can significantly boost our R&D partnerships.
- However, the lengthy process and uncertainty with loan approval can be frustrating.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Manager at a mid-market tech company (Los Angeles, CA)
Age: 47 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The policy's emphasis on specifics like inflation impact are beneficial.
- Understanding how costs are driven by the broader economy helps in decision-making.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $1250000000 (Low: $1000000000, High: $1500000000)
Year 2: $1300000000 (Low: $1050000000, High: $1550000000)
Year 3: $1350000000 (Low: $1100000000, High: $1600000000)
Year 5: $1500000000 (Low: $1250000000, High: $1750000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The focus is on U.S. small businesses involved in key technology sectors which may have spillover effects across the economy.
- The long-term impact may depend on the success of small businesses in using these loans effectively for growth and innovation.
- Supply chain disruptions continue to pose a risk and addressing these through targeted reporting can influence how well the loans meet their intended purpose.