Section 1 Short title
This Act may be cited as the “Supporting Entrepreneurs and Economic Development Act” or the “SEED Act”.
Supporting Entrepreneurs and Economic Development Act
A BILL
To amend the Small Business Act to require certain lenders and development companies to refer certain borrowers to a resource partner, and for other purposes.
Sec. 2 Resource partner referrals
7(a) loans— Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following new paragraph:
“(38) Resource partner referrals
“(A) In general—If a lender determines that a borrower is not eligible for a loan under this subsection, such lender shall refer the borrower to a resource partner (as defined in section 5004 of the American Rescue Plan Act of 2021). Such referral shall include—
“(i) the address, phone number, and website (if available) of such resource partner; and
“(ii) a description of the services offered by such resource partner.
“(B) Report—A lender shall submit to the Administrator an annual report describing referrals made under this paragraph.”
Disaster assistance loans— Section 7(f) of the Small Business Act (15 U.S.C. 636(f)) (relating to Additional requirements for 7(b) loans) is amended by adding at the end the following new paragraph:
“(2) Resource partner referrals
“(A) In general—If a lender determines that a borrower is not eligible for a loan under subsection (b), such lender shall refer the borrower to a resource partner (as defined in section 5004 of the American Rescue Plan Act of 2021). Such referral shall include—
“(i) the address, phone number, and website (if available) of such resource partner; and
“(ii) a description of the services offered by such resource partner.
“(B) Report—A lender shall submit to the Administrator an annual report describing referrals made under this paragraph.”
Microloans— Section 7(m)(6) of the Small Business Act (15 U.S.C. 636(m)(6)) is amended by adding at the end the following new subparagraph:
“(F) Resource partner referrals
“(i) In general—If an eligible intermediary determines that a person is not eligible for a loan under this subsection, eligible intermediary lender shall refer the borrower to a resource partner (as defined in section 5004 of the American Rescue Plan Act of 2021). Such referral shall include—
“(I) the address, phone number, and website (if available) of such resource partner; and
“(II) a description of the services offered by such resource partner.
“(ii) Report—An eligible intermediary shall submit to the Administrator an annual report describing referrals made under this subparagraph.”
State and local development company loans— Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following new paragraph:
“(8) Resource partner referrals
“(A) In general—If a development company determines that a person is not eligible for assistance under this title, such development company shall refer the borrower to a resource partner (as defined in section 5004 of the American Rescue Plan Act of 2021). Such referral shall include—
“(i) the address, phone number, and website (if available) of such resource partner; and
“(ii) a description of the services offered by such resource partner.
“(B) Report—A development company shall submit to the Administrator an annual report describing referrals made under this paragraph.”
Reports—
Lender reports— Each lender and development company (as defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)) authorized to make loans by the Administrator of the Small Business Administration shall submit to the Administrator an annual report detailing referrals made by such lender or development company pursuant to a covered provision, as applicable.
Administrator reports— Section 10 of the Small Business Act (15 U.S.C. 639) is amended by adding at the end the following new subsection:
“(i) Lender referral report
“(1) In general—Along with the report required under subsection (a), the Administrator shall include a description of the number of referrals to resource partners made by lenders or development companies pursuant to a covered provision. Such report shall be published on a website of the Administration and shall include the following:
“(A) An analysis of the effectiveness of a referral and any resulting services provided by the resource partner.
“(B) The nature of the services provided by a resource partner, including (if applicable) the number of training or counseling sessions provided and the number of hours of assistance provided.
“(C) Whether any persons received assistance as a result of such a referral.
“(2) Covered provision defined—In this subsection, the term covered provision means sections 7(a)(38), 7(f)(2), 7(m)(6)(F), and section 502(8) of the Small Business Investment Act of 1958.”
GAO report—
In general— Not later than February 1, 2023, and every two years thereafter, the Comptroller General of the United States shall submit to Congress, and publish on a publicly available website, a report on the rate of referrals to resource partners made by lenders or development companies pursuant to a covered provision and data on persons that received assistance as a result of such a referral.
Definitions— In this subsection:
Resource partner— The term resource partner has the meaning given in section 5004 of the American Rescue Plan Act of 2021 (15 U.S.C. 9013).
Covered provision— The term covered provision means—
sections 7(a)(38), 7(f)(2), and 7(m)(6)(F) of the Small Business Act (15 U.S.C. 631 et seq.), as added by this Act; and
section 502(8) of the Small Business Investment Act of 1958 (15 U.S.C. 696), as added by this Act.