Congressional Record, Extensions of Remarks — April 15, 2021, E405
Summary
This is E405 of the Congressional Record, Extensions of Remarks, April 15, 2021. Under the heading Microloan Improvement Act of 2021, Ms. Jackson Lee speaks in support of H.R. 1502, saying it revises the microloan program managed by the small business agency, authorizes a line of credit, and places limits on the repayment term. She cites Associated Press analysis of Paycheck Protection Program data on loans to minority owners, saying the program handed out 5.2 million loans worth $525 billion. The page also includes remarks on scams targeting older Americans and a Senior Fraud Advisory Office, with the views and figures attributed to the speaker.
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“Congressional Record, Extensions of Remarks — April 15, 2021, E405.”
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April 15, 2021 CONGRESSIONAL RECORD — Extensions of Remarks E405
MICROLOAN IMPROVEMENT ACT According to an Associated Press analysis tage of senior citizens and deprive them of
OF 2021 of the low-interest government loans, minority their hard-earned savings.
owners struggled more than white owners to Bad actors preying on older Americans is,
SPEECH OF find banks that would accept their applications; unfortunately, nothing new. But in the midst of
HON. SHEILA JACKSON LEE or otherwise were disadvantaged by the terms a global pandemic impacting Americans’ lives
OF TEXAS of the program. and livelihoods, cracking down on those
Data from the Paycheck Protection Program scams must be a priority.
IN THE HOUSE OF REPRESENTATIVES
released December 1 and analyzed by the As- One such scam was thwarted by Houston
Wednesday, April 14, 2021 police and the Harris County District Attorney,
sociated Press show that many minority own-
Ms. JACKSON LEE. Madam Speaker, I rise ers desperate for a relief loan did not receive who made an arrest in February in an inter-
in support of H.R. 1502—the ‘‘Microloan Im- one until the PPP’s last few weeks, while national cyber-scam that bilked unsuspecting,
provement Act of 2021,’’ revises the microloan many more white business owners were able mostly elderly victims out of more than $1 mil-
program managed by the Small Business Ad- to get loans earlier in the program. lion.
ministration (SBA) to provide certain financial The program, which began April 3 and This bill is aimed at cracking down on these
assistance to small businesses through des- ended August 8 and handed out 5.2 million scams by bringing public and private stake-
ignated intermediaries. loans worth $525 billion, helped many busi- holders together, so that we might give our
Specifically, the bill authorizes an inter- nesses stay on their feet during a period when seniors the resources they need to tackle
mediary to offer a line of credit to a small busi- government measures to control the these predatory schemes.
ness, and it increases the average amount for Although 1 in 20 seniors in the U.S. is a tar-
coronavirus forced many to shut down or op-
loans from an intermediary to participating get of fraud schemes, the National Adult Pro-
erate at a diminished capacity.
small businesses that makes the intermediary tective Services Association has found that
The PPP program struggled to meet its
eligible for a reduced interest rate on SBA only 1 in 44 seniors report that they are vic-
promise of aiding communities that historically
loans. tims of a fraud scheme.
have not gotten the help they needed. The Senior Fraud Advisory Office will ad-
The bill also places limits on the repayment The PPP program was especially difficult to
term for a microloan, and it prohibits the SBA dress these low reportingrates by directing the
access for micro businesses. FTC to educate seniors, families, and care-
from imposing any additional limitation on the A micro business employs nine people or
term for repayment of a microloan. givers of the process for contacting law en-
fewer, and this is the most common kind of forcement after being targeted in a fraud
Further, the SBA must: private-sector business in the U.S. Small busi-
reserve 15 percent of new loan funds that scheme.
ness statistics show that while this might be It will also direct the FTC to help improve
are made available for disbursement as the most common kind of enterprise, its share
microloans to designated underutilized states the nation’s fraud response efforts by reform-
of employees is very small, providing only ing FTC’s complaint system as well as en-
and make the remaining 85 percent available 10.5 percent of all private-sector jobs.
for any state; hancing fraud surveillance through better co-
As the economy continues to recover, we ordination with law enforcement agencies.
establish a process for an intermediary to should not forget that not all businesses will
provide the major credit reporting agencies The Senior Scams Prevention Advisory
recover at the same rate, just as all workers Group will bring together relevant government
with information about a borrower that is rel- are not heading back into the workforce with agencies, consumer advocates, and industry
evant to credit reporting, and the same opportunities to find or resume em-
include information regarding equitable dis- representatives to collect and develop model
ployment. educational materials for retailers, financial in-
tribution of loan funds in its annual report.
I ask my colleagues to join me in supporting stitutions, and wire transfer companies to use
The SBA Microloan program approves up to
this bill that will provide much needed financial in preventing scams on seniors.
$50,000 to small businesses to provide busi-
support to our mom and pop businesses. The FTC will coordinate efforts to educate
nesses with working capital, or to purchase in-
f the public and even the employees of key in-
ventory, supplies, and equipment.
Loans for $50,000 may not seem like a lot dustries who often find themselves on the
FRAUD AND SCAM REDUCTION front lines of anti-scamming activities, helping
to a small business, but the micro small busi- ACT
nesses that fill our neighborhoods would ben- prevent fraud before it happens.
Mr. Speaker, we need to strengthen federal
efit from having access to these funds. SPEECH OF
prevention efforts and ensure leaders in the
A micro enterprise employs nine people or
fewer, and this is the most common kind of HON. SHEILA JACKSON LEE public and private sectors are collaborating on
OF TEXAS effective safeguards.
private-sector business in the United States. I urge all members to join me in voting to
Small business statistics show that while IN THE HOUSE OF REPRESENTATIVES
pass H.R. 1215, the Fraud and Scam Reduc-
this might be the most common kind of enter- Wednesday, April 14, 2021 tion Act, which is critical to protecting seniors’
prise, its share of employees is very small, hard-earned savings and stopping fraudulent
Ms. JACKSON LEE. Mr. Speaker, I rise
providing only 10.5 percent of all private-sec- schemes before it’s too late.
today in support of H.R. 1215, the Fraud and
tor jobs.
The fortunes of micro businesses during
Scam Reduction Act, which will create the f
Senior Scams Prevention Advisory Group and
COVID–19 has been fraught with risks. 504 MODERNIZATION AND SMALL
We know that: the Senior Fraud Advisory Office to improve
MANUFACTURER ENHANCEMENT
82 percent of businesses that fail do so be- the Federal Trade Commission’s (FTC) pre-
ACT OF 2021
cause of cash flow problems; vention and response efforts against senior
Small businesses employ 59 million people fraud and scams through enhanced coordina- SPEECH OF
in the U.S.A; tion with key industries, consumer advocacy
50 percent of all small businesses are oper- groups, appropriate law enforcement agen- HON. SHEILA JACKSON LEE
cies, and consumers. OF TEXAS
ated from home;
Every day, and far too often, vulnerable IN THE HOUSE OF REPRESENTATIVES
84 percent of small business owners indi-
cate that they’re feeling optimistic about the seniors in Texas and across the country fall Wednesday, April 14, 2021
future of their companies; victim to financial scammers. Ms. JACKSON LEE. Madam Speaker, I rise
64 percent of small business owners begin Seniors have worked their entire lives with in support of H.R. 1490, the ‘‘504 Moderniza-
with only $10,000 in capital; the promise of a safe and secure retirement, tion and Small Manufacturer Enhancement
Approximately a quarter of small businesses but unfortunately criminals are taking advan- Act,’’ which modifies the Small Business Ad-
begin with no financing whatsoever; tage of uncertainty surrounding the pandemic ministration (SBA) 504 Loan Program an op-
SSpencer on DSK126QN23PROD with REMARKS
Only 40 percent of small businesses are and working overtime to target them. portunity to modernize and expand.
profitable; and Retirement accounts are not the only dam- The SBA 504 Loan Program allows small
Only 64 percent of small businesses have age these scams harm—they damage the businesses to access SBA financing through a
their own website. independence and trust of a vulnerable com- certified development company (CDC) for ex-
Thousands of minority-owned small busi- munity. pansion or modernization.
nesses were shown to be at the end of the During the COVID–19 pandemic, we have Specifically, the bill adds policy goals, at
line in applying to the government’s Paycheck seen instances of fraud rise in unprecedented least one of which a CDC must demonstrate
Protection Program (PPP). numbers, as scammers attempt to take advan- to be eligible for assistance.
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