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 agriculture, manufacturing, or the 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: Sen. Ernst, Joni [R-IA]
Target Audience
Population: People working in or owning small businesses in agriculture, manufacturing, or technology sectors globally
Estimated Size: 20000000
- The bill affects small businesses engaged in agriculture, manufacturing, or technology.
- Small businesses will be able to access increased loan amounts.
- The bill is expected to have indirect impacts on employees within these small businesses as access to more capital can lead to growth and job stability.
- Inflation and supply chain concerns are additional factors addressed by this bill, which can have broader economic impacts.
Reasoning
- The policy affects small businesses in specific industry sectors, notably agriculture, manufacturing, and technology, which limits the pool of directly impacted individuals.
- Budget constraints and the size of the target population suggest a need to focus the impact on a select subset of eligible businesses initially.
- The policy is expected to affect not only business owners but also employees, due to potential business growth, job creation, and enhanced job stability.
- Given the nature of the sectors involved, geographical disparities may arise, with rural areas potentially benefiting more in agricultural activities, while urban settings may see more impact in technology and manufacturing.
- Economic conditions, such as inflation and supply chain disruptions, addressed by the policy, can have broader indirect effects across the economy, potentially affecting even those not directly engaged in the target sectors.
Simulated Interviews
Farmer (Iowa)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Excited about the increased loan opportunities to invest in better farming equipment.
- Concerned that the inflation might offset the benefits of the increased loan amounts.
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 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 7 | 3 |
Manufacturing Business Owner (Michigan)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The opportunity to access larger loans is a relief amidst the current supply chain challenges.
- Hopes the policy will stabilize raw material prices.
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 | 4 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 3 |
Tech Startup Founder (California)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Access to more capital could be pivotal in scaling our operations faster.
- Skeptical about the actual disbursement speed of these increased loans.
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 | 9 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Small Business Consultant (Texas)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- This policy should significantly support businesses his company assists but notes it's not a 'fix-all'.
- Sees broader economic benefits as more capital circulates in the economy.
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 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Urban Farmer (New York)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 3/20
Statement of Opinion:
- The enhanced loan limits can enable expansion of urban farming capabilities.
- Worries about bureaucratic processes delaying access.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Mechanical Engineer for a Small Manufacturing Firm (Ohio)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- If the company can access larger loans, it might secure my job and even lead to potential salary increments.
- Worries that focus might remain on the owners and not trickle down to the workforce.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Agricultural Scientist (Georgia)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- Increased funding could allow more farms to experiment with innovative agricultural technologies I develop.
- Concerned that technological advances might overshadow traditional methods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Retired Factory Owner (Alabama)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- The policy comes too late for my business, but I believe it could provide hope and stability for current owners.
- Mentors young entrepreneurs and believes this policy could be a 'game-changer'.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Supply Chain Analyst (Florida)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- This act will probably lead to more stable supply chains, benefiting both my clients and the sector overall.
- Uncertain if the funding will be evenly distributed among industries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Tech Employee at Start-up (Colorado)
Age: 26 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Increased funding through loans may offer job security and business expansion opportunities.
- Concerns over newly incurred business debts may have indirect impacts.
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 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $200000000 (Low: $150000000, High: $250000000)
Year 3: $200000000 (Low: $150000000, High: $250000000)
Year 5: $200000000 (Low: $150000000, High: $250000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The SBA's ability to manage increased reporting and loan administration capacity needs.
- Economic conditions such as inflation, interest rates, and supply chain stability, which directly influence small business viability.
- Potential reluctance of small businesses to upscale or take on new loans given economic uncertainties.