Bill Overview
Title: Community Advantage Loan Program Permanency Act of 2022
Description: This bill provides statutory authority for the Small Business Administration's Community Advantage Loan Program. The program provides access to capital for small business owners in underserved and low-to-moderate income communities.
Sponsors: Rep. Chu, Judy [D-CA-27]
Target Audience
Population: Small business owners in underserved and low-to-moderate income communities
Estimated Size: 6000000
- The Community Advantage Loan Program targets small business owners, a subset of the global population involved in entrepreneurship.
- Small business owners are a significant part of the workforce in many countries, especially in developing nations.
- Underserved and low-to-moderate income communities are a global demographic, found in every country of the world.
- There are over 300 million small and medium-sized enterprises (SMEs) worldwide, which this legislation could potentially impact.
Reasoning
- The policy targets small business owners in underserved or low-to-moderate income communities, which represents roughly 20% of small businesses in the U.S. or about 6 million businesses.
- The budget constraint implies that not all eligible businesses can be covered immediately, especially given the high number of potential beneficiaries.
- The policy could significantly impact those who gain access to funding, potentially improving their business prospects and personal wellbeing.
- Certain individuals might not experience direct impacts because of ineligibility, competition for limited funds, or the extensive time needed for full implementation.
Simulated Interviews
Small Business Owner (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I think access to affordable loans is crucial for businesses like mine.
- This policy could greatly help, as we're often overlooked by traditional banks.
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 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Boutique Owner (Phoenix, AZ)
Age: 30 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I'm hopeful this policy could provide an opportunity to expand my business.
- Startups need more support to thrive, and this could be it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Farm Owner (Rural Mississippi)
Age: 56 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- Policies like this are the only way people in rural areas can compete.
- If they keep the application process simple, it would help a lot.
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 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Restaurant Owner (Newark, NJ)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- I'd appreciate having more capital options.
- Given the struggles with the pandemic, this could be a turning point for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Tech Startup Founder (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Access to early funding is key in tech.
- A program like this could remove a lot of initial burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Bookseller (Washington, D.C.)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I hope this policy gives businesses like mine a chance to compete.
- We need every bit of support to stay afloat against big retailers.
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 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Grocery Store Owner (Chicago, IL)
Age: 33 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 13/20
Statement of Opinion:
- Access to loans could mean stocking more essential products and maintaining liquidity.
- It's important to have policies targeting small businesses.
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 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Clothing Manufacturer (Miami, FL)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- The right loans could allow us to improve production capacity.
- Policies like this can be game-changers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
IT Consultant (San Francisco, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Access to capital could help bring on more clients and finish larger projects.
- Support for small businesses is crucial in tech-heavy cities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Consultant (Boston, MA)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I'm skeptical of this policy affecting my line of work.
- But it's good to know that funds are directed toward small businesses.
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 |
Cost Estimates
Year 1: $750000000 (Low: $500000000, High: $1000000000)
Year 2: $700000000 (Low: $500000000, High: $950000000)
Year 3: $750000000 (Low: $500000000, High: $1000000000)
Year 5: $800000000 (Low: $600000000, High: $1100000000)
Year 10: $850000000 (Low: $600000000, High: $1150000000)
Year 100: $900000000 (Low: $700000000, High: $1200000000)
Key Considerations
- The program's success hinges on effective targeting and support of businesses in underserved areas.
- Impact measurement will be vital to understanding long-term benefits versus costs.
- Possible need for additional funding or adjustments to ensure program effectiveness.