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: Sen. Cardin, Benjamin L. [D-MD]
Target Audience
Population: Small business owners in underserved and low-to-moderate income communities
Estimated Size: 7000000
- The bill provides statutory authority for a loan program targeting small business owners.
- The target beneficiaries are in underserved and low-to-moderate income communities.
- Small businesses are a significant part of the global economy, especially in regions struggling economically.
- Assistance to small businesses can improve economic stability and job creation in these communities.
Reasoning
- The policy is designed to aid small business owners in underserved and low-to-moderate income communities. This suggests we focus on people who are either small business owners or aspiring entrepreneurs in these areas.
- Consider using a diverse set of backgrounds including race, gender, age, and business sectors to ensure a comprehensive understanding of the policy's impact.
- The size of the community and the economic health prior to the policy will vary the impact—from stark improvements to negligible changes depending on the existing infrastructure and support systems.
- Some individuals will not be directly affected due to their business or location falling outside the target areas, or due to not requiring loans.
Simulated Interviews
Food Truck Owner (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It's been hard to access affordable capital to expand my business.
- This policy might finally help me move from one food truck to three, which I’ve been planning for years.
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 | 9 | 4 |
| Year 20 | 8 | 3 |
Auto Repair Shop Owner (Detroit, MI)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I hope this program provides accessible loans; it’s been difficult to sustain the shop lately.
- A little help could go a long way to hire more staff and upgrade my equipment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 4 | 2 |
Freelance Graphic Designer (Phoenix, AZ)
Age: 25 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- I’m wary of taking on loans but having access could help me rent a small office and get better equipment.
- Programs like this can be the reassurance needed to take the next step in business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Restaurant Owner (Houston, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 2/20
Statement of Opinion:
- I already have debts from weathering the pandemic impact; more loans could be risky.
- However, if structured well, it might be what saves the business and keeps people employed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Tailor Shop Owner (Newark, NJ)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- At my age, I’m not looking for expansion but keeping up has become harder.
- I'm not sure more loans would be ideal but increased community success might indirectly help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Non-profit Cafe Manager (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 3/20
Statement of Opinion:
- For us, this policy means potential partnerships and growth opportunities within our community.
- Lower interest rates could help explore sustainable expansion options.
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 | 4 |
Digital Marketing Consultant (Miami, FL)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- Loans from this program could help launch a new division focusing on underrepresented voices in emerging markets.
- I’m optimistic but cautious about potential qualification hurdles.
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 | 7 |
| Year 20 | 8 | 6 |
Home Services Contractor (Memphis, TN)
Age: 53 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- As a contractor, my work fluctuates greatly; loans would allow me to take on bigger projects consistently.
- I’m concerned about the initial paperwork and terms clarity.
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 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Tech Startup Founder (Seattle, WA)
Age: 27 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 7.0 years
Commonness: 2/20
Statement of Opinion:
- We’re looking for seed capital but are struggling with traditional loan routes due to our lack of history.
- I see this program as a crucial potential lifeline and support framework.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 7 |
| Year 5 | 10 | 7 |
| Year 10 | 10 | 7 |
| Year 20 | 9 | 6 |
Child Care Center Provider (Birmingham, AL)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Our childcare center needs renovations to meet new standards; a loan would help immensely.
- I just hope the application process is fair and equitable to allow us access.
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 | 9 | 3 |
| Year 20 | 8 | 3 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $510000000 (Low: $410000000, High: $610000000)
Year 3: $520000000 (Low: $420000000, High: $620000000)
Year 5: $540000000 (Low: $440000000, High: $640000000)
Year 10: $600000000 (Low: $500000000, High: $700000000)
Year 100: $800000000 (Low: $700000000, High: $900000000)
Key Considerations
- Loan guarantee obligations involve financial risk, requiring diligent oversight of loan performance.
- The success of the program hinges on identifying and reaching suitable small businesses in target areas.
- Ensuring these businesses result in sustainable growth will determine the long-term fiscal impact.
- The program's scale and focus could indirectly influence broader market dynamics beyond targeted regions.