Scott, Colleagues Introduce Bill to Prevent Democrats’ Big Government Lending Scheme
WASHINGTON – Today, U.S. Senators Tim Scott (R-S.C.) and John Kennedy (R-La.), along with Republican colleagues, introduced the Protecting Access to Credit for Small Businesses Act. The bill is designed to prevent Democrats from turning the Small Business Administration (SBA) into a direct lender, as they are attempting to do in their tax-and-spend reconciliation bill.
“Forcing community banks and local credit unions to compete with a massive government agency is inefficient and wrong,” said Senator Tim Scott.“Funneling tax dollars through the federal government in order to loan it back to small business owners with interest makes no sense. This is just another example of Democrats’ misguided plan for a big government takeover of virtually every aspect of American life and private institutions.”
“Fraud and inefficiency characterize the Small Business Administration’s history in direct lending,” said Senator Kennedy. “The government shouldn’t encroach on a space where private lenders are already doing a good job getting funds to the small businesses that need them. I’m proud to partner with Sen. Scott to stop the SBA from replacing community and other private lenders with bureaucrats.”
The bill is co-sponsored by Senators Rand Paul (R-Ky.), Pat Toomey (R-Penn.), John Thune (R-S.D.), Jim Risch (R-Idaho), Mike Crapo (R-Idaho), Jim Inhofe (R-Okla.), John Barrasso (R-Wyo.), Roger Marshall (R-Kan.), Steve Daines (R- Mont.), Thom Tillis (R-N.C.), Kevin Cramer (R-N.D.), James Lankford (R-Okla.), John Cornyn (R-Texas), Jerry Moran (R-Kan.), Bill Cassidy (R-La.), John Boozman (R-Ark.), Mike Rounds (R-S.D.), and Rick Scott (R-Fla.).
- In October, Senator Scott and several colleagues sent a letter to Majority Leader Chuck Schumer, Speaker Nancy Pelosi, and House and Senate Small Business Committee Chairs Ben Cardin and Nydia Velázquez warning against their plan to make the SBA a direct lender through the Democrats’ reckless tax and spending bill.
- The SBA Office of the Inspector General estimates that the federal government Economic Injury Disaster Loan program had 17 times the amount of potentially fraudulent loans than did Paycheck Protection Program loans run through financial institutions.
- The legislation is supported by American Bankers Association, Consumer Bankers Association, Independent Community Bankers of America, Bank Policy Institute, Credit Union National Association, National Association of Federally Insured Credit Unions, and South Carolina Bankers Association.