Access to capital

On July 13, Small Business Majority sent a letter to congressional leadership urging lawmakers to address harmful loopholes in the Digital Markets Clarity (CLARITY) Act that threaten to reduce the availability of reliable capital for small business loans through traditional financial institutions.

In June 17, Small Business Majority Northern California Outreach Manager Suli Kenyatta testified in support of AB 2116. This legislation would expand the California Consumer Financial Protection Law (CCFPL) to protect small businesses from abusive commercial financing practices.

On June 30, Small Business Majority submitted comments in opposition to a proposed rule issued by the Small Business Administration (SBA) to eliminate the 8(a) Business Development Program’s rebuttable presumption of social disadvantage. The rebuttable presumption of social disadvantage has existed for many years to level the playing field for small firms that have lacked the resources, connections and past performance history needed to bid and win federal contracts.

On April 3, Small Business Majority, alongside Fair Financial Service Project Texas Appleseed, The Responsible Business Lending Coalition, The Texas Association of Community Development Corporations and Business and Community Lenders, submitted a public comment regarding a rulemaking proposal posted in the Texas Register, proposing amendments to 7 TAC §§86.301 - 86.307, 86.310 - 86.313, 86.320 - 86.322. 

Small Business Majority network member Paloma Corona, owner of Little Sprouts Language Immersion Preschool in Los Angeles testified before California State Assembly Committee on Banking and Finance to share her experience with predatory loans and ask the Committee to support AB 2116, which proposes to expand the California Consumer Financial Protection Law (CCFPL) to protect small businesses from abusive commercial financing practices. 

On April 28, Small Business Majority led a coalition of nearly 100 local, state and national organizations in a letter to Small Business Committee Ranking Members Sen. Ed Markey (D-MA) and Rep. Nydia Velázquez (D-NY) to endorse the Investing in the American Dream Act. The legislation seeks to overturn SBA guidance issued in February that restricts loan access for businesses without 100% U.S. citizenship ownership. Instead, it would codify previous standards allowing businesses to qualify for 7(a), 504, Microloan, and Surety Bond programs if they are based in the U.S.

On March 27, Mike Horn submitted written testimony in support of SB-881 to the Maryland House Economic Matters Committee. This legislation would would force non-bank lenders to transparently disclose the true APR for small business loans, which is the only established metric that enables borrowers to make apples-to-apples comparisons between different financing products.

This fact sheet highlights the critical role of affordable, responsible capital in helping small businesses start, grow and succeed—while underscoring the persistent barriers many entrepreneurs face in accessing financing. Drawing on national survey data, it reveals that a majority of small business owners struggle to obtain funding, with disparities particularly pronounced for minority-owned businesses.