Bill Overview
Title: SSBCI Improvement Act
Description: This bill modifies how funds are transferred to (and recouped from) states under the State Small Business Credit Initiative. For example, if a state's allocated amount is less than or equal to $1,000,000 the Department of the Treasury must provide the full amount in a single transfer.
Sponsors: Rep. Phillips, Dean [D-MN-3]
Target Audience
Population: Small business owners benefiting from state credit initiatives
Estimated Size: 33000000
- The bill impacts the State Small Business Credit Initiative, which is aimed at supporting small businesses through state allocations.
- The primary groups affected are small business owners who are potential beneficiaries of the credit initiative funds.
- Approximately 33 million small businesses exist worldwide.
- Small businesses employ around 61 million people in the U.S., representing a significant portion of the workforce that could be indirectly affected.
- Not all small businesses will be directly affected; the actual number will depend on state-level decisions regarding SSBCI allocations.
Reasoning
- This policy affects primarily the state allocations for small business credits, which means the largest impact is on small business owners relying on these credits.
- Since the target budget is limited to $50 million in the first year, not all small businesses will see a direct benefit. A high number of businesses might apply for this but only a fraction will receive funding.
- Considering the number of small businesses and their geographic and economic diversity, the impact will range from none to high depending on business size, location, and existing financial health.
- The policy will mostly aid in early-stage business growth or help stabilize existing businesses which are struggling.
- The indirect effects on employees of these businesses and local economies should also be assessed, though they will be less significant on an individual basis compared to business owners.
Simulated Interviews
Owner of a small tech startup (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- I think this policy could be really beneficial for us; we've been waiting for something like this to take off.
- Access to credit is crucial for our expansion plans, but I'm wary about whether our state will prioritize this appropriately.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Owner of a retail store (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- We’ve been holding out for some support after COVID-19 impacted us big time, so more accessible funds would be great.
- However, I’m still not sure if this will be enough considering the cost of doing business here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Owner of a manufacturing business (Topeka, KS)
Age: 50 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 2/20
Statement of Opinion:
- This policy might help us access more competitive rates relatively.
- Our state's past allocation decisions have generally favored agriculture, though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Freelancer/Consultant (Austin, TX)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- While this doesn't directly affect me, better-supported businesses might mean more contracts.
- It’s nice to know these options are available if I decide to start my own firm.
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 | 7 |
| Year 20 | 6 | 6 |
Owner of an art gallery (Detroit, MI)
Age: 31 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 1/20
Statement of Opinion:
- I really hope this means improved access to financing, which we desperately need.
- Detroit's initiatives already support art, so this could mean reinforcement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Restaurant owner (Raleigh, NC)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- We've been investing a lot recently, and this credit could support us further.
- I have reservations about how quickly these funds will be available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Owner of a cleaning service (Chicago, IL)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This policy seems promising, especially in a competitive market like ours.
- I am cautiously optimistic as it could help us expand into new neighborhoods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Technology consultant (Atlanta, GA)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- I like seeing support for businesses but I'm not sure how impactful this will be long-term without better infrastructure.
- My previous venture couldn't survive even with available credits.
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 | 6 | 6 |
| Year 20 | 5 | 5 |
Co-owner of a craft brewery (Seattle, WA)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 1/20
Statement of Opinion:
- Expanding distribution would be much easier with additional financial backing.
- While helpful, this won’t make or break our plans – we’re pretty solid otherwise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 10 | 9 |
| Year 20 | 9 | 8 |
Owner of a cattle ranch (Laramie, WY)
Age: 53 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 1/20
Statement of Opinion:
- With this policy, we might upgrade our logistics, which has long been overdue.
- However, agri-businesses don’t always get priority in these allocations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $51000000 (Low: $31000000, High: $71000000)
Year 3: $52000000 (Low: $32000000, High: $72000000)
Year 5: $54000000 (Low: $34000000, High: $74000000)
Year 10: $58000000 (Low: $38000000, High: $78000000)
Year 100: $80000000 (Low: $58000000, High: $95000000)
Key Considerations
- Improvement in fund transfer mechanisms can increase trust and participation among states and small businesses.
- The short-term costs may be overshadowed by long-term efficiency gains and economic stimulus.
- The actual impact will depend on state-level implementations and administrative capability.