Financial Services and General Government Appropriations Act, 2024

Floor Speech

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Ms. CHU. Mr. Chairman, I rise today in strong opposition to this amendment, which would prohibit the Small Business Administration from implementing the Community Advantage SBLC program. This amendment is an attack on veterans, rural, and low-income entrepreneurs, and it should be rejected resoundingly.

One of small businesses' greatest challenges is obtaining access to financial capital. For over a decade now, the Community Advantage program has been helping close this funding gap. Community Advantage lenders are required to make at least 60 percent of their loans to underserved markets defined as veteran-owned businesses, rural businesses, new businesses, businesses located in HUBZones, empowerment zones, and other low-income communities.

These are the types of businesses that too often find themselves on the margins. Their owners lack the ability to qualify for more traditional loans because they may lack a credit history or preexisting relationship with a bank.

What is unique about Community Advantage lenders is that they are mission-based, primarily nonprofits focused on economic and community development. They go beyond just providing loans. They provide technical assistance to the businesses they serve. As a result, Community Advantage has been far more successful than the traditional Small Business Administration 7(a) loan program at reaching underserved groups like veterans.

Community Advantage was operating as a pilot up until the SBA, just this past month, established the Community Advantage SBLC program to provide more permanency for the program and lenders.

Congress needs to build on these efforts by providing statutory permanency for Community Advantage so veteran, rural, and low-income small business owners can continue to be served. This amendment would do the exact opposite, eradicating this proven program and undoing all our progress.

Mr. Chairman, I urge my colleagues to support our Nation's veterans, rural, and low-income entrepreneurs by rejecting this amendment.

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