House Taking SBA Reauthorization One Step at a Time; Mixed Projections on Senate Action

WASHINGTON — Though the House overwhelmingly passed the Small Business Lending Improvements Act of 2007 (H.R. 1332), it is just one piece of a larger Small Business Administration reauthorization plan and reports are unclear whether the Senate is on the same page.

The bill, which passed the House 380-45, would help lower the cost to borrowers to secure business loans through the SBA. H.R. 1332 would direct the SBA administrator to establish a rural lending outreach program and a community express program for loans of $250,000 or less; provide special considerations for medical professionals looking to start their practices in Designated Shortage Areas; increase veteran participation; revise eligibility requirements for development company designation as a certified development company and require certain CDCs to contract for the foreclosure and liquidation of defaulted small business loans; and authorize SBA loans for projects which reduce energy consumption by at least 10%.