Access to capital

On September 19, Small Business Majority submitted comments in opposition to a proposed rule issued by the U.S. Small Business Administration (SBA) to increase the monetary-based size standards which determine which businesses can qualify for federal assistance and contract opportunities. Increasing monetary-based size standards will ultimately allow larger, well-resourced businesses to gain access to federal contract opportunities that may have otherwise been set aside for smaller, under-resourced businesses.  

Small Business Majority joined Rise Economy and 40+ other California community organizations and allies, in response to the agencies’ proposal to rescind the 2023 Community Reinvestment Act (CRA) rule (“2023 Rule”).

On September 16, Small Business Majority submitted a statement for the record in response to a U.S. House Committee on Small Business hearing titled “Pathway to Capital: The Role of SBA Lending in Supporting Main Street America.” The statement details how recent changes made by the U.S. Small Business Administration (SBA) to the guidelines governing their flagship loan programs, which increase the cost of SBA loans and place new restrictions on loan eligibility, have created additional, unnecessary barriers to affordable and responsible capital for small businesses. 

On September 4, Small Business Majority submitted a statement for the record in advance of a U.S. House Committee on Small Business hearing titled “Leveling the Playing Field: Fostering Opportunities for Small Business Contractors." The statement outlines how Congress and federal agencies can expand access to federal procurement opportunities for small businesses through proven tools such as government-wide contracting goals and set-asides, broadening the Rule of Two, and holding prime contractors accountable. 
 

On August 18, Small Business Majority submitted comments opposing a proposed rule from the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) to rescind the 2023 Community Reinvestment Act (CRA) final rule. The 2023 rule represented decades of thoughtful feedback and progress on federal banking regulations, and rescinding it will roll back critical efforts to ensure financial institutions meet the evolving needs of rural and under-resourced small businesses. 
 

On July 18, Small Business Majority submitted a statement for the record in response to a U.S. House Committee on Financial Services hearing titled “Dodd-Frank Turns 15: Lessons Learned and the Road Ahead.” The statement outlines the existing financing gaps that disproportionately impact women- and minority-owned businesses and how the implementation of Section 1071, which requires banks to collect and report data on small business loan applicants to the CFPB, would address these disparities by increasing transparency in the small business lending market. 

On July 2, Small Business Majority submitted comments in response to the Consumer Financial Protection Bureau’s (CFPB) interim final rule to further extend compliance dates set forth in the small business lending data collection rule required under Section 1071 of the Dodd-Frank Act. Under the interim final rule, the collection of critical small business lending data by financial institutions will be further delayed until July 1, 2026.

CAMEO Network, The Responsible Business Lending Coalition and Small Business Majority submitted a letter to the California Senate Judiciary Committee in support for Senate Bill 825 (Limón/Grayson). This bill clarifies that the Department of Financial Protection and Innovation (DFPI) retains the authority under the California Consumer Financial Protection Law (CCFPL) to enforce protections against deceptive or abusive practices, even for individuals or entities otherwise exempt from the CCFPL due to holding certain licenses.

Small Business Majority sumbitted a letter of request to the Assembly Appropriations Committee for AB 801, legislation that will establish a state-level Community Reinvestment Act (CRA) to encourage financial institutions to meet the credit needs of all communities, including entrepreneurs in underserved communities.