Congressional Record, H.R. 7903 Community Advantage Loan Program — House, December 3, 2020
Summary
A page of the Congressional Record, House, dated December 3, 2020, beginning at page H6068, during consideration of H.R. 7903, the Community Advantage Loan Program bill. The text amends the Small Business Act to create the Community Advantage Loan Program, a mission-oriented loan guarantee program meant to reach more underserved small business concerns, including veterans, women and startups, and defines a small business concern in an underserved market by location in areas such as a HUBZone, a rural area or an opportunity zone. The page also records a demand by Mr. Woodall for the yeas and nays, a communication from the Clerk of the House to the Speaker, and a unanimous consent request by Mr. McGovern about the defense bill for 2021.
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“Congressional Record, H.R. 7903 Community Advantage Loan Program — House, December 3, 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-12-03-crec-2020-12-03-pt1-pgh6068-3-76b9f17347/
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H6068 CONGRESSIONAL RECORD — HOUSE December 3, 2020
The SPEAKER pro tempore. The ‘‘(37) COMMUNITY ADVANTAGE LOAN PRO- as mostly rural or completely rural in the
question is on ordering the previous GRAM.— most recent decennial census;
question. ‘‘(A) PURPOSES.—The purposes of the Com- ‘‘(vii) the term ‘service-connected’ has the
The question was taken; and the munity Advantage Loan Program are— meaning given the term in section 101(16) of
Speaker pro tempore announced that ‘‘(i) to create a mission-oriented loan guar- title 38, United States Code;
antee program that builds on the dem- ‘‘(viii) the term ‘small business concern in
the ayes appeared to have it.
onstrated success of the Community Advan- an underserved market’ means a small busi-
MR. WOODALL. Mr. Speaker, on
tage Pilot Program of the Administration, as ness concern—
that I demand the yeas and nays. established in 2011, to reach more under- ‘‘(I) that is located in—
The SPEAKER pro tempore. Pursu- served small business concerns; ‘‘(aa) a low- to moderate-income commu-
ant to section 3 of House Resolution ‘‘(ii) to increase lending to small business nity;
965, the yeas and nays are ordered. concerns in underserved and rural markets, ‘‘(bb) a HUBZone;
Pursuant to clause 8 of rule XX, fur- including veterans and members of the mili- ‘‘(cc) a community that has been des-
ther proceedings on this question are tary community, small business concerns ignated as an empowerment zone or an en-
postponed. owned and controlled by socially and eco- terprise community under section 1391 of the
f nomically disadvantaged individuals, Internal Revenue Code of 1986;
women, and startups; ‘‘(dd) a community that has been des-
COMMUNICATION FROM THE ‘‘(iii) to ensure that the program under ignated as a promise zone by the Secretary
CLERK OF THE HOUSE this subsection (in this paragraph referred to of Housing and Urban Development;
The SPEAKER pro tempore laid be- as the ‘7(a) loan program’) is more inclusive ‘‘(ee) a community that has been des-
fore the House the following commu- and more broadly meets congressional intent ignated as a qualified opportunity zone
to reach borrowers who are unable to get under section 1400Z–1 of the Internal Rev-
nication from the Clerk of the House of credit elsewhere on reasonable terms and enue Code of 1986;
Representatives: conditions; ‘‘(ff) a rural area; or
OFFICE OF THE CLERK, ‘‘(iv) to help underserved small business ‘‘(gg) any area for which a disaster declara-
HOUSE OF REPRESENTATIVES, concerns become bankable by utilizing the tion or determination described in subpara-
Washington, DC, December 3, 2020. small-dollar financing and business support graphs (A), (B), (C), or (E) of subsection (b)(2)
Hon. NANCY PELOSI, experience of mission-oriented lenders; has been made that has not terminated or
The Speaker, House of Representatives, ‘‘(v) to allow certain mission-oriented expired more than 2 years before the date (or
Washington, DC. lenders, primarily nonprofit financial inter- later, as determined by the Administrator)
DEAR MADAM SPEAKER: Pursuant to the mediaries focused on economic development on which a loan is made to such concern
permission granted in Clause 2(h) of Rule II in underserved markets, to access guaran- under the program;
of the Rules of the U.S. House of Representa- tees for loans under this subsection (in this ‘‘(II) for which more than 50 percent of the
tives, the Clerk received the following mes- paragraph referred to as ‘7(a) loans’) of not employees reside in a low- or moderate-in-
sage from the Secretary of the Senate on De- more than $250,000 and provide management come community;
cember 3, 2020, at 11:44 a.m.: and technical assistance to small business ‘‘(III) that is a startup or new business;
That the Senate agrees to the House concerns as needed; ‘‘(IV) owned and controlled by socially and
amendment to the bill S. 910. ‘‘(vi) to provide certainty for the lending economically disadvantaged individuals, in-
That the Senate agrees to the House
partners that make loans under this sub- cluding Black Americans, Hispanic Ameri-
amendment to the bill S. 1069.
That the Senate passed S. 434. section and to attract new lenders; and cans, Native Americans, Asian Pacific Amer-
That the Senate passed S. 496. ‘‘(vii) to encourage collaboration between icans, and other minorities;
That the Senate passed S. 578. mission-oriented and conventional lenders ‘‘(V) owned and controlled by women;
That the Senate passed with an amend- under this subsection in order to support un- ‘‘(VI) owned and controlled by veterans;
ment H.R. 1044. derserved small business concerns. ‘‘(VII) owned and controlled by service-dis-
That the Senate passed without amend- ‘‘(B) DEFINITIONS.—In this paragraph— abled veterans;
ment H.R. 3349. ‘‘(i) the term ‘covered institution’ means— ‘‘(VIII) not less than 51 percent owned and
That the Senate passed without amend- ‘‘(I) a development company, as defined in controlled by one or more—
ment H.R. 3465. section 103 of the Small Business Investment ‘‘(aa) members of the Armed Forces par-
With best wishes, I am, Act of 1958 (15 U.S.C. 662), participating in ticipating in the Transition Assistance Pro-
Sincerely, the 504 Loan Guaranty program established gram of the Department of Defense;
CHERYL L. JOHNSON, under title V of such Act (15 U.S.C. 695 et ‘‘(bb) Reservists;
Clerk. seq.); ‘‘(cc) spouses of veterans, members of the
f ‘‘(II) a nonprofit intermediary, as defined Armed Forces, or Reservists; or
in subsection (m)(12), participating in the ‘‘(dd) surviving spouses of veterans who
ANNOUNCEMENT BY THE SPEAKER microloan program under subsection (m); died on active duty or as a result of a serv-
PRO TEMPORE ‘‘(III) a non-Federally regulated entity cer- ice-connected disability; or
The SPEAKER pro tempore. Pursu- tified as a community development financial ‘‘(IX) that is eligible to receive a veterans
ant to clause 8 of rule XX, the Chair institution by the Community Development advantage loan;
will postpone further proceedings Financial Institutions Fund established ‘‘(ix) the term ‘small business concern
under section 104(a) of the Riegle Commu- owned and controlled by socially and eco-
today on motions to suspend the rules
nity Development and Regulatory Improve- nomically disadvantaged individuals’ has the
on which the yeas and nays are or- ment Act of 1994 (12 U.S.C. 4703(a)); and meaning given the term in section 8(d)(3)(C);
dered. ‘‘(IV) an eligible intermediary, as defined ‘‘(x) the term ‘startup’ means a business
The House will resume proceedings in subsection (l)(1), as in effect on the day that has not yet opened; and
on postponed questions at a later time. before the date of enactment of this para- ‘‘(xi) the term ‘veterans advantage loan’
f graph, that participated in the Intermediary means a loan made to a small business con-
Lending Pilot Program established under cern under this subsection that is eligible for
COMMUNITY ADVANTAGE LOAN subsection (l)(2); a waiver of the guarantee fee under para-
PROGRAM ‘‘(ii) the term ‘existing business’ means a graph (18) or the yearly fee under paragraph
Ms. VELÁZQUEZ. Mr. Speaker, I small business concern that has been in ex- (23) because the small business concern is a
move to suspend the rules and pass the istence for not less than 2 years on the date concern described in subclause (VI), (VII), or
bill (H.R. 7903) to amend the Small on which a loan is made to the small busi- (VIII) of clause (viii).
ness concern under the program; ‘‘(C) ESTABLISHMENT.—There is established
Business Act to establish the Commu- ‘‘(iii) the term ‘new business’ means a a Community Advantage Loan Program
nity Advantage Loan Program, as small business concern that has been exist- under which the Administration may guar-
amended. ence for not more than 2 years on the date on antee loans made by covered institutions
The Clerk read the title of the bill. which a loan is made to the small business under this subsection, including loans made
The text of the bill is as follows: concern under the program; to small business concerns in underserved
H.R. 7903 ‘‘(iv) the term ‘program’ means the Com- markets.
Be it enacted by the Senate and House of Rep- munity Advantage Loan Program estab- ‘‘(D) PROGRAM LEVELS.—In each of fiscal
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resentatives of the United States of America in lished under subparagraph (C); years 2021 through 2025, not more than 10
Congress assembled, ‘‘(v) the term ‘Reservist’ means a member percent of the number of loans guaranteed
SECTION 1. COMMUNITY ADVANTAGE LOAN PRO- of a reserve component of the Armed Forces under this subsection may be guaranteed
GRAM. named in section 10101 of title 10, United under the program.
Section 7(a) of the Small Business Act (15 States Code; ‘‘(E) NEW LENDERS.—
U.S.C. 636(a)) is amended by adding at the ‘‘(vi) the term ‘rural area’ means any coun- ‘‘(i) FISCAL YEARS 2021 AND 2022.—In each of
end the following: ty that the Bureau of the Census has defined fiscal years 2021 and 2022—
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December 3, 2020 CONGRESSIONAL RECORD — HOUSE H6069
‘‘(I) not more than 150 covered institutions interface between the covered institutions as part of the weekly reports on lending ap-
shall participate in the program; and and the Administration; provals under this subsection—
‘‘(II) the Administrator shall allow for new ‘‘(ii) shall ensure that the training and ‘‘(aa) on and after the date of enactment of
applicants and give priority to applications technical assistance described in clause (i) is this paragraph until the date on which the
submitted by any covered institution that is provided for free or at a low-cost; and regulations promulgated under subparagraph
located in an area with insufficient lending ‘‘(iii) may enter into a contract to provide (L)(i) take effect, the number and dollar
under the program. the training or technical assistance de- amount of loans guaranteed under the Com-
‘‘(ii) FISCAL YEARS 2023, 2024, AND 2025.— scribed in clause (i) with an organization munity Advantage Pilot Program of the Ad-
‘‘(I) IN GENERAL.—In each of fiscal years with expertise in lending under this sub- ministration; and
2023, 2024, and 2025— section, mission-oriented lending, and lend- ‘‘(bb) on and after the date on which the
‘‘(aa) except as provided in subclause (II), ing to underserved markets. Administration begins to approve loans
not more than 175 covered institutions shall ‘‘(K) DELEGATED AUTHORITY.—A covered in- under the program, the number and dollar
participate in the program; and stitution is not eligible to receive delegated amount of loans guaranteed under the pro-
‘‘(bb) the Administrator shall allow for authority from the Administration under the gram.
new applicants and give priority to applica- program until the covered institution makes ‘‘(II) SEPARATE ACCOUNTING.—The number
tions submitted by any covered institution not less than 7 loans under the program. and dollar amount of loans reported in a
that is located in an area with insufficient ‘‘(L) REGULATIONS.— weekly report under subclause (I) for loans
lending under the program. ‘‘(i) IN GENERAL.—Not later than 180 days guaranteed under the Community Advantage
Pilot Program of the Administration and
‘‘(II) EXCEPTION FOR FISCAL YEAR 2025.—In after the date of enactment of this paragraph
under the program shall include a breakdown
fiscal year 2025, not more than 200 covered and in accordance with the notice and com-
by the categories of race, ethnicity, and gen-
institutions may participate in the program ment procedures under section 553 of title 5,
der of the owners of the small business con-
if— United States Code, the Administrator shall
cerns.
‘‘(aa) after reviewing the report under sub- promulgate regulations to carry out the pro-
‘‘(ii) ANNUAL REPORTS.—
paragraph (M)(iii), the Administrator deter- gram, which shall—
‘‘(I) IN GENERAL.—For each of the first 5
mines that not more than 200 covered insti- ‘‘(I) outline the requirements for participa- fiscal years in which the program is in effect,
tutions may participate in the program; tion by covered institutions in the program; the Administration shall submit to the Com-
‘‘(bb) the Administrator notifies Congress ‘‘(II) define performance metrics for cov- mittee on Small Business and Entrepreneur-
in writing of the determination of the Ad- ered institutions participating in the pro- ship of the Senate and the Committee on
ministrator under item (aa); and gram for the first time, which are required Small Business of the House of Representa-
‘‘(cc) not later than July 30, 2024, the Ad- to be met in order to continue participating tives, and make publicly available on the
ministrator notifies the public of the deter- in the program; internet, information about loans provided
mination of the Administrator under item ‘‘(III) determine the credit score of a small under the program and under the Commu-
(aa). business concern under which the Adminis- nity Advantage Pilot Program of the Admin-
‘‘(F) GRANDFATHERING OF EXISTING LEND- tration is required to underwrite a loan pro- istration.
ERS.—Any covered institution that partici- vided to the small business concern under ‘‘(II) CONTENTS.—Each report submitted
pated in the Community Advantage Pilot the program and the loan may not be made and made publicly available under subclause
Program of the Administration and is in using the delegated authority of a covered (I) shall include—
good standing on the day before the date of institution; ‘‘(aa) the number and dollar amounts of
enactment of this paragraph— ‘‘(IV) require each covered institution that loans provided to small business concerns
‘‘(i) shall retain designation in the pro- sells loans made under the program on the under the program and under the Commu-
gram; and secondary market to establish a loan loss re- nity Advantage Pilot Program of the Admin-
‘‘(ii) shall not be required to submit an ap- serve fund, which— istration, including a breakdown by—
plication to participate in the program. ‘‘(aa) with respect to covered institutions ‘‘(AA) the gender of the owners of the
‘‘(G) REQUIREMENT TO MAKE LOANS TO UN- in good standing, including the covered insti- small business concern;
DERSERVED MARKETS.—Not less than 75 per- tutions described in subparagraph (F), shall ‘‘(BB) the race and ethnicity of the owners
cent of loans made by a covered institution be maintained at a level equal to 3 percent of of the small business concern, disaggregated
under the program shall consist of loans the outstanding guaranteed portion of the in a manner that captures all the racial
made to small business concerns in under- loans; and groups specified in the American Community
served markets. ‘‘(bb) with respect to any other covered in- Survey conducted by the Bureau of the Cen-
‘‘(H) MAXIMUM LOAN AMOUNT.— stitution, shall be maintained at a level sus;
‘‘(i) IN GENERAL.—Except as provided in equal to 5 percent of the outstanding guaran- ‘‘(CC) whether the small business concern
clause (ii), the maximum loan amount for a teed portion of the loans; and is located in an urban or rural area; and
loan guaranteed under the program is ‘‘(V) allow the Administrator to require ‘‘(DD) whether the small business concern
$250,000. additional amounts to be deposited into a is a startup, an existing business, or a new
‘‘(ii) EXCEPTION.— loan loss reserve fund established by a cov- business, as provided in the weekly reports
‘‘(I) IN GENERAL.—The Administration ered institution under subclause (IV) based on lending approvals under this subsection;
may, in the discretion of the Administration, on the risk characteristics or performance of ‘‘(bb) the proportion of loans described in
approve a guarantee of a loan under the pro- the covered institution and the loan port- item (aa) compared to—
gram that is more than $250,000 and not more folio of the covered institution. ‘‘(AA) other 7(a) loans of any amount;
than $350,000. ‘‘(ii) PILOT PROGRAM.— ‘‘(BB) other 7(a) loans of similar amounts;
‘‘(II) NOTIFICATION.—Not later than 2 days ‘‘(I) REVERSION.—Beginning on the date of ‘‘(CC) express loans provided under para-
after approving the guarantee of a loan enactment of this paragraph and ending on graph (31) of similar amounts; and
under subclause (I), the Administration shall the day before the date on which the regula- ‘‘(DD) other 7(a) loans of similar amounts
provide notification of the approval to the tions promulgated by the Administrator provided to small business concerns in un-
covered institution making the loan. under clause (i) take effect, the Adminis- derserved markets;
‘‘(I) INTEREST RATES.— trator may only carry out the Community ‘‘(cc) a comparison of the number and dol-
‘‘(i) IN GENERAL.—Except as provided in Advantage Pilot Program of the Administra- lar amounts of loans provided to small busi-
clause (ii), the maximum allowable interest tion based on applicable program guidelines, ness concerns under the program, under the
rate prescribed by the Administration on requirements, and other policy in effect on Community Advantage Pilot Program of the
any financing made on a deferred basis pur- September 1, 2018, except that the definition Administration, and under each category of
suant to the program shall not exceed the of underserved market shall include— loans described in item (bb), broken down
maximum allowable interest rate in effect ‘‘(aa) a community and an area described by—
on September 1, 2018. in items (ee) and (ff), respectively, of sub- ‘‘(AA) loans of not more than $50,000;
‘‘(ii) MODIFICATION.—The Administration paragraph (B)(viii)(I); and ‘‘(BB) loans of more than $50,000 and not
shall not modify the maximum allowable in- ‘‘(bb) small business concerns described in more than $150,000;
terest rate described in clause (i) unless the clauses (IV) and (V) of subparagraph ‘‘(CC) loans of more than $150,000 and not
Administration provides the public with an (B)(viii). more than $250,000; and
opportunity to comment for a period of not ‘‘(II) TERMINATION.—Beginning on the date ‘‘(DD) loans of more than $250,000 and not
less than 180 days before implementing the on which the regulations promulgated by the more than $350,000;
modified interest rate. Administrator under clause (i) take effect, ‘‘(dd) the number and dollar amounts of
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‘‘(J) TRAINING AND TECHNICAL ASSISTANCE.— the Administrator may not carry out the loans provided to small business concerns
The Administration— Community Advantage Pilot Program of the under the program and under the Commu-
‘‘(i) shall in person and online, provide up- Administration. nity Advantage Pilot Program of the Admin-
front and ongoing training and technical as- ‘‘(M) REPORTING.— istration by State, and the jobs created or
sistance for covered institutions making ‘‘(i) WEEKLY REPORTS.— retained within each State;
loans under the program in order to support ‘‘(I) IN GENERAL.—The Administration shall ‘‘(ee) with respect to loans provided to
prudent lending standards and improve the report on the website of the Administration, small business concerns under the program
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H6070 CONGRESSIONAL RECORD — HOUSE December 3, 2020
and under the Community Advantage Pilot ‘‘(IV) institute regular and sustainable sys- rates for minority-owned firms were
Program of the Administration— tems of communication between the Admin- about three times higher compared to
‘‘(AA) the performance of the loans pro- istration and covered institutions partici- those of nonminority-owned firms with
vided by each type of covered institution; pating in the program.
‘‘(BB) the performance of the loans broken
gross receipts under $500,000.
‘‘(ii) REPORT.—Not later than 180 days after
down by loan size; the date of enactment of this paragraph, the To that end, the Community Advan-
‘‘(CC) the performance of the loans broken Administrator shall submit to the Com- tage program partners with SBA’s cer-
down by whether the credit score of the bor- mittee on Small Business and Entrepreneur- tified development companies, SBA
rower is above, below, or equal to 140; ship of the Senate and the Committee on microlenders, and community develop-
‘‘(DD) the predictive purchase rate of the Small Business of the House of Representa- ment financial institutions, or CDFIs,
loans; tives a report that includes— all of which have deep relationships in
‘‘(EE) the early default rate of the loans; ‘‘(I) the recommendations of the Commu- the neighborhoods and can expand ac-
‘‘(FF) the 12-month default rate of the nity Advantage Working Group established
loans; cess to capital in these areas.
under clause (i); and
‘‘(GG) the cumulative default rate for the ‘‘(II) a recommended plan and timeline for
The Community Advantage program
loans for the 5-year period preceding the re- implementation of those recommendations. reaches significantly more women and
port; ‘‘(O) TERMINATION.—The authority to carry minorities than traditional 7(a) loan
‘‘(HH) the charge-off rates of the loans; out the program under this paragraph shall programs, which will be critical to
‘‘(II) the charge-off rates as a percent of terminate on September 30, 2025.’’. helping these groups that were hit es-
the unpaid principal balance as in table 9 of pecially hard by the COVID–19 pan-
the annual budget submitted by the Admin-
The SPEAKER pro tempore. Pursu-
istration; and ant to the rule, the gentlewoman from demic.
‘‘(JJ) the purchase rates as a percent of the New York (Ms. VELÁZQUEZ) and the To fill gaps in lending, it is impera-
unpaid principal balance as in table 8 of the gentleman from Ohio (Mr. CHABOT) tive that we empower the community
annual budget submitted by the Administra- each will control 20 minutes. lenders with the strongest relation-
tion; The Chair recognizes the gentle- ships in these areas. We can accomplish
‘‘(ff) a list of covered institutions partici- woman from New York. this by passing the bill before us today
pating in the program and the Community GENERAL LEAVE to bring stability and long-needed rec-
Advantage Pilot Program of the Administra-
Ms. VELÁZQUEZ. Mr. Speaker, I ask ognition to a program that has success-
tion, including—
‘‘(AA) the name, location, and contact in- unanimous consent that all Members fully delivered over $770 million in cap-
formation, such as the website and telephone may have 5 legislative days in which to ital since its inception.
number, of each covered institution; and revise and extend their remarks and in- I thank Ms. CHU and Mr. SPANO for
‘‘(BB) a breakdown by the number and dol- clude extraneous material on the meas- working in a bipartisan manner on this
lar amount of the loans approved for small ure under consideration. important legislation.
business concerns; and The SPEAKER pro tempore. Is there Mr. Speaker, I recommend a ‘‘yes’’
‘‘(gg) the benchmarks established by the objection to the request of the gentle- vote to all of my colleagues in the
working group under subparagraph (N)(i). woman from New York? House, and I reserve the balance of my
‘‘(III) TIMING.—An annual report required
There was no objection. time.
under this clause shall—
‘‘(aa) be submitted and made publicly
Ms. VELÁZQUEZ. Mr. Speaker, I Mr. CHABOT. Mr. Speaker, I yield
available not later than October 15 of each yield myself such time as I may con- myself such time as I may consume.
year; and sume. I rise in support of H.R. 7903, as
‘‘(bb) cover the lending activity for the fis- Mr. Speaker, before I begin, I would amended. This is a bill to improve and
cal year that ended on September 30 of that like to take a moment to recognize my authorize the SBA’s Community Ad-
same year. good friend and colleague, Ranking vantage Loan Program for 5 years.
‘‘(iii) GAO REPORT.—Not later than 3 years Member CHABOT. Mr. CHABOT has led Mr. Speaker, before I get into the
after the date of enactment of this para- this committee with me for years. To-
graph, the Comptroller General of the United business of the day, I would like to
gether, we have worked in a bipartisan mention that, with the passage of these
States shall submit to the Administrator,
the Committee on Small Business and Entre- manner to pass legislation that will four bills today, our committee has
preneurship of the Senate, and the Com- help entrepreneurs across the country produced 35 individual bipartisan
mittee on Small Business of the House of launch and grow their small busi- pieces of legislation that have passed
Representatives a report— nesses. the House just this Congress. We have
‘‘(I) assessing— STEVE has been an absolute pleasure had similar numbers the previous two
‘‘(aa) the extent to which the program ful- to work with. Not only is he results-
fills the requirements of this paragraph; and
Congresses, as well. That is an uncom-
oriented, but he is strongly committed mon occurrence in a time of divided
‘‘(bb) the performance of covered institu- to bipartisanship and finding common
tions participating in the program; and government.
ground. While we do not always agree, The reason we have been so success-
‘‘(II) providing recommendations on the
administration of the program and the find- Ranking Member CHABOT has always ful in improving the programs that
ings under items (aa) and (bb) of subclause respected our views and the need to benefit America’s more than 30 million
(I). work together to do the right thing for small businesses is the leadership and
‘‘(N) WORKING GROUP.— America’s small businesses. the bipartisanship of our chairwoman,
‘‘(i) IN GENERAL.—Not later than 90 days The bills we are bringing to the floor
after the date of enactment of this para- NYDIA VELÁZQUEZ.
today represent our committee’s long
graph, the Administrator shall establish a Now, this is my swan song, so to
tradition of collaboration.
Community Advantage Working Group, Turning to the legislation now, I rise speak, here as the ranking member of
which shall— in support of the bill before us today, the committee, as I am term-limited
‘‘(I) include—
H.R. 7903, which would codify the and, therefore, unable to continue serv-
‘‘(aa) a geographically diverse representa- ing in that role. I have had the pleas-
tion of members from among covered insti- SBA’s Community Advantage Loan
Program. ure of being on the Small Business
tutions participating in the program; and Committee—I am on the Foreign Af-
‘‘(bb) representatives from the Office of Initially launched in 2011 as a pilot
Capital Access of the Administration, in- program, Community Advantage pro- fairs Committee and Judiciary Com-
cluding the Office of Credit Risk Manage- vides 7(a) loan guarantees to nonprofit mittee, as well—for 12 terms now, rep-
ment, the Office of Financial Assistance, and lenders to make loans up to $250,000 to resenting Ohio’s First Congressional
the Office of Economic Opportunity; small businesses in underserved mar- District. I have also been fortunate to
‘‘(II) develop recommendations on how the kets. have been the ranking member two of
Administration can effectively manage, sup- As we all know, businesses in under- those terms and the chair of the com-
port, and promote the program and the mis- served areas have historically strug- mittee two of those terms, as well.
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sion of the program; Again, that is why I am term-limited.
‘‘(III) establish metrics of success and
gled to access capital through conven-
tional credit markets. This is particu- In each of those terms that I have
benchmarks that reflect the mission and
population served by covered institutions larly true for minority-owned small spent in a leadership position on the
under the program, which the Administra- businesses. committee, my counterpart was Chair-
tion shall use to evaluate the performance of According to the Minority Business woman or Ranking Member
those covered institutions; and Development Agency, the loan denial VELÁZQUEZ. She has remained a valued
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December 3, 2020 CONGRESSIONAL RECORD — HOUSE H6071
friend and a reliable partner to do the gressman ROSS SPANO, does just that check Protection Program, or PPP,
things that we needed to do to help the by providing statutory authorization first launched at the start of April, tra-
Nation’s small businesses. I sincerely to the Community Advantage program, ditional lenders prioritized their larg-
thank her for the partnership that we already a proven and successful pilot est and longstanding clients, making it
have forged over the years. program. difficult for underserved businesses to
We share a common bond of wanting Thanks to Community Advantage, even submit an application for assist-
to do everything in our power to help underserved small businesses, which ance.
America’s small businesses, and we typically have the hardest time access- To address this problem, Congress es-
have consistently been able to put par- ing loans, can gain access to affordable tablished a set-aside lending authority
tisan politics aside and work together financing and technical assistance for community financial institutions
to support that goal. So, again, I thank from mission-based, primarily non- like certified development companies,
her for her willingness to work with profit lenders through SBA’s 7(a) loan microloan intermediaries, and commu-
my staff and me over those years, and guarantee. That means more money in nity development financial institu-
I hope and trust that they will be able more communities to keep our busi- tions, many of which are already cer-
to continue that relationship with my nesses operating. This is something we tified Community Advantage lenders.
replacement, and I think that will hap- need now more than ever. The result was a success, as these non-
pen. The Community Advantage program traditional lenders were able to reach
Finally, I mentioned staff before. I was first established almost 10 years the underserved businesses and, to-
want to thank the longtime Demo- ago as a pilot at the Small Business gether, deliver over 141,000 PPP loans
cratic Small Business Committee staff- Administration with the goal of deliv- totaling more than $8.5 billion.
ers Melissa Jung, Justin Pelletier, ering capital to the hard-to-reach busi- Now it is time to build on that suc-
Naveen Parmar, and Ellen Harrington nesses that need under $250,000 in fi- cess. This legislation before us today
for their extraordinary commitment to nancing to grow. Since 2011, the pro- includes measures, with bipartisan
bipartisanship over the years, regard- gram has facilitated over $850 million agreement, to make the program even
less of who was chair or who was the in loans averaging $140,000 each. Com- stronger. It will expand the definition
ranking member. Again, on that com- pare that to the average 7(a) loan of of ‘‘underserved businesses’’ to explic-
mittee, we have worked together for $530,000, and it is clear Community Ad- itly include those owned by people of
many years now. vantage is meeting a small business color and those located in declared dis-
Now, to the business at hand. When need that is unfilled by the traditional aster areas, and it will increase the
traditional and conventional lending is 7(a) program. percentage of loans that lenders must
out of reach for the Nation’s smallest It has also made a big impact in my make in underserved markets from 60
businesses, they have the opportunity district, where businesses have re- to 75 percent of their portfolios. It will
to turn to a number of the SBA’s gov- ceived nearly $10 million in Commu- also allow SBA to make loans up to
ernment guaranteed lending programs. $350,000 on a case-by-case basis.
nity Advantage loans. That includes
For approximately 10 years, the SBA With these improvements and the
businesses like Unincorporated Coffee
has been operating a Community Ad- long-term certainty afforded by statu-
Roasters in Altadena, California, which tory authorization, this bill will make
vantage pilot program that combines received a Community Advantage loan the Community Advantage program an
access to capital and technical assist- last summer. This business had been in even more powerful tool for closing the
ance. The legislation before us today operation for under 2 years, but their credit gap and delivering affordable
makes structural changes and improve- Community Advantage loan allowed capital to more small businesses.
ments in the program and authorizes it them to expand into the space next With a long and arduous economic re-
for 5 years. door and open a second company to covery before us, this bill will help
With oversight and reporting require- roast their own coffee beans for the countless small businesses rebuild, and
ments in place, this program will con- wholesale market. it will help them to start anew as we
tinue to provide access to capital and
b 1515 recover from the coronavirus pan-
consistency to the Nation’s job cre- demic.
ators who truly need assistance. They have even added jobs and con-
Mr. Speaker, I thank Congressman
I thank the gentleman from Florida tinued to grow during the pandemic.
SPANO for his partnership and Chair-
(Mr. SPANO) and the gentlewoman from That is what can happen when we woman VELÁZQUEZ and Ranking Mem-
California (Ms. JUDY CHU) for working make small business loans just a little ber CHABOT for their strong support. I
in a bipartisan manner on behalf of the less difficult to access. And it is an ex- also thank the Community Advantage
Nation’s smallest firms. They have perience shared by businesses across lenders and borrowers whose success
both worked together on this and pre- the country. and testimony over the years have
vious legislation, both of them, in the Last year, I chaired a hearing in the powerfully made the case for Congress
spirit of bipartisanship on that com- Subcommittee on Investigations, Over- to pass this legislation to authorize the
mittee. sight and Regulations to examine the program.
Mr. Speaker, I urge all of my col- Community Advantage program. We Mr. Speaker, I urge my colleagues to
leagues to support H.R. 7903, which was heard from borrowers and lenders vote ‘‘yes’’ on H.R. 7903.
favorably reported out of the com- about the ways that Community Ad- Mr. CHABOT. Mr. Speaker, I yield
mittee via voice vote, and I reserve the vantage has closed the credit gap for such time as he may consume to the
balance of my time. underserved businesses. gentleman from Florida (Mr. SPANO).
Ms. VELÁZQUEZ. Mr. Speaker, I Because of their focus on economic Mr. Speaker, I thank the gentleman
yield such time as she may consume to and community development, the mis- for his service in this body. He has in-
the gentlewoman from California (Ms. sion-based lenders that facilitate Com- troduced and supported a number of
JUDY CHU), the sponsor of the bill and munity Advantage loans can leverage pieces of legislation and has worked
the chair of the Subcommittee on In- their strong relationships within the very hard in his leadership position as
vestigations, Oversight and Regula- community to provide accessibility, ranking member of the Oversight, In-
tions. guidance, and assistance to the busi- vestigations and Regulations Sub-
Ms. JUDY CHU of California. Mr. nesses that too often find themselves committee. I thank him for his service
Speaker, I rise today in strong support on the margins without the ability to here.
of my bill, H.R. 7903, which would au- access capital from traditional banks. Mr. SPANO. Mr. Speaker, I thank the
thorize the Community Advantage As a result, Community Advantage is gentleman from Ohio (Mr. CHABOT) for
dlhill on DSK120RN23PROD with HOUSE
Loan Program for 5 years. To help our able to reach far more businesses those kind comments. I appreciate that
struggling economy, we need a bipar- owned by people of color, women, and very much.
tisan bill that gets money to those who veterans than traditional 7(a) loans. I rise today in support of a bill I am
need it. This is a proven model, and we can proud to sponsor, H.R. 7903, legislation
This bill, which I am proud to have see further evidence in the response to to improve and authorize the SBA’s
introduced with my colleague, Con- the COVID–19 pandemic. When the Pay- Community Advantage Loan Program.
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H6072 CONGRESSIONAL RECORD — HOUSE December 3, 2020
Small businesses are the driver of our Ms. VELÁZQUEZ. Mr. Speaker, in al- at any time to consider a conference
communities, and now, more than ever, most a decade, Community Advantage report to accompany H.R. 6395; that all
it is imperative for Congress to support lenders have delivered over $770 million points of order against the conference
them. in affordable capital to underserved report and against its consideration be
In my home State of Florida, there small businesses across America, as- waived; that the conference report be
are over 2.5 million small businesses sisting women- and minority-owned considered as read; and that the pre-
employing over 3.5 million Floridians. businesses that have historically strug- vious question be considered as ordered
As a former small business owner gled to secure affordable capital on the conference report to its adop-
myself and as someone who will be a through traditional means, yet new tion without intervening motion ex-
small business owner again very, very lenders are hesitant to participate be- cept: one, 1 hour of debate; and, two,
soon, I understand the sacrifice many cause of its pilot status and frequently one motion to recommit if applicable.
small business owners make to keep changing rules. The SPEAKER pro tempore. Is there
their doors open and to meet their pay- Today’s bill will remedy these prob- objection to the request of the gen-
rolls. I know the challenges that they lems and ultimately grow the CA pro- tleman from Massachusetts?
face and the grit that it takes for them gram to deliver more capital to entre-
to persevere and the impact that they There was no objection.
preneurs who need access to affordable
have on our communities.
capital the most, especially those se- f
Among these challenges for many
verely impacted by the COVID–19 pan-
small businesses is acquiring the cap-
demic.
ital that is necessary to finance their 504 MODERNIZATION AND SMALL
operations. Mr. Speaker, I applaud the work by
the gentlewoman from California (Ms. MANUFACTURER ENHANCEMENT
Many of the tools available at the ACT OF 2020
SBA strive to increase access to capital JUDY CHU) and the gentleman from
for small businesses that are unable to Florida (Mr. SPANO) for their efforts in Ms. VELÁZQUEZ. Mr. Speaker, I
receive it through conventional and crafting a bipartisan bill to codify the move to suspend the rules and pass the
traditional lending markets. One of Community Advantage program. bill (H.R. 8211) to amend the Small
these tools to support small businesses Mr. Speaker, I encourage all my col- Business Investment Act of 1958 to im-
is the SBA’s Community Advantage leagues to vote ‘‘yes,’’ and I yield back prove the loan guaranty program, en-
Loan Program, which was launched as the balance of my time. hance the ability of small manufactur-
a pilot program to assist small busi- The SPEAKER pro tempore. The ers to access affordable capital, and for
nesses in historically underserved and question is on the motion offered by other purposes, as amended.
rural areas. It targets assistance to the gentlewoman from New York (Ms. The Clerk read the title of the bill.
veteran-owned businesses, women- VELÁZQUEZ) that the House suspend the The text of the bill is as follows:
owned businesses, startups, and under- rules and pass the bill, H.R. 7903, as
H.R. 8211
served minority communities, all key amended.
Be it enacted by the Senate and House of Rep-
job creators. The combination of finan- The question was taken; and (two-
resentatives of the United States of America in
cial and technical assistance has made thirds being in the affirmative) the Congress assembled,
the program a proven game changer for rules were suspended and the bill, as
SECTION 1. SHORT TITLE.
many small businesses. amended, was passed.
Mr. Speaker, I thank the gentle- This Act may be cited as the ‘‘504 Mod-
A motion to reconsider was laid on
ernization and Small Manufacturer Enhance-
woman from California (Ms. JUDY CHU) the table. ment Act of 2020’’.
for her bipartisan leadership in pro-
f SEC. 2. ADDITIONS TO POLICY GOALS FOR THE
viding strategic improvements to this DEVELOPMENT COMPANY PRO-
program and to move it from a pilot CONFERENCE REPORT ON H.R. 6395, GRAM.
program to an authorized program for WILLIAM M. (MAC) THORNBERRY Section 501(d)(3) of the Small Business In-
the next 5 years. NATIONAL DEFENSE AUTHORIZA- vestment Act of 1958 (15 U.S.C. 695(d)(3)) is
The improvements included in H.R. TION ACT FOR 2021 amended—
7903 will ensure the program serves Ms. KENDRA S. HORN of Oklahoma (1) by redesignating subparagraphs (A)
businesses truly in need of SBA serv- through (L) as subparagraphs (B) through
submitted the following conference re- (M), respectively;
ices. Specifically, H.R. 7903 defines the port and statement on the bill (H.R.
program with congressional intent. It (2) by inserting before subparagraph (B) (as
6395) to authorize appropriations for so redesignated) the following:
outlines how Community Advantage
fiscal year 2021 for military activities ‘‘(A) workforce development through work-
lenders must operate within the pro- based or work-integrated training, which
of the Department of Defense, for mili-
gram and details loan terms and other shall be satisfied by demonstrating that a
tary construction, and for defense ac-
requirements. small business concern that is a subject of
tivities of the Department of Energy,
Mr. Speaker, I also thank the chair- the project has—
to prescribe military personnel ‘‘(i) a documented in-house training pro-
woman and the ranking member for ad-
strengths for such fiscal year, and for gram, the duration of which is not shorter
vancing this important legislation that
other purposes. than 12 weeks; or
will strengthen and improve the Com-
munity Advantage Loan Program. (For conference report and state- ‘‘(ii) entered into a contract with an enti-
ment, see proceedings of the House of ty—
Mr. Speaker, I urge my colleagues to ‘‘(I) to provide trained applicants for any
support the bill. December 3, 2020, published in Book II.)
open position of employment at the small
Mr. CHABOT. Mr. Speaker, this is a f business concern; and
good bill that deserves our support. ‘‘(II) that ensures that any applicant pro-
The SBA’s Community Advantage pro- MAKING IN ORDER AT ANY TIME vided to the small business concern under
gram provides both financial and tech- CONSIDERATION OF CON- subclause (I) has undergone not fewer than 12
nical assistance to our Nation’s small- FERENCE REPORT ON H.R. 6395, weeks of training that is relevant to the
est firms. It is a great program that WILLIAM M. (MAC) THORNBERRY open position described in that subclause,’’;
NATIONAL DEFENSE AUTHORIZA- (3) by amending subparagraph (D) (as so re-
has proven results. designated) to read as follows:
Mr. Speaker, I urge my colleagues to TION ACT FOR 2021
‘‘(D) expansion of minority-owned, em-
dlhill on DSK120RN23PROD with HOUSE
support this bill, and I yield back the Mr. MCGOVERN. Mr. Speaker, I ask ployee-owned, or women-owned business de-
balance of my time. unanimous consent that it be in order velopment,’’;
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