From: The Honorable Carolyn B. Maloney
Sent By:

Bill: H.R. 1833
Date: 4/5/2017

Support Small Businesses!

Cosponsor Investing in America’s Small Businesses Act of 2017

H.R. 1833

Current Cosponsors: Velazquez, Norton, Ellison, Clarke, Vargas, Plaskett, Carson, Evans, Adams, Lawson, Lieu, Lee, Raskin, Napolitano

Endorsed By: Community Development Financial Institutions Coalition, Opportunity Finance Network and National Federation of Community Development Credit Unions


Dear Colleague,


Last week was National Small Business Week, a time each year for our nation to recognize and celebrate the critical contributions of America’s entrepreneurs and small business owners. Join me in supporting small businesses by becoming a cosponsor of the
Investing in America’s Small Businesses Act of 2017.

This important legislation allows Community Development Financial Institutions (CDFIs)
to extend affordable credit to more small businesses in underserved communities through microloans under $50,000. Specifically, it would provide grants to establish loan-loss reserve funds, which will help CDFIs leverage private investment to expand
small business lending in underserved communities through microloans. These small loans are important tools to give businesses working capital, or help them invest in new equipment or supplies, and have no pre-payment penalties. Small businesses are critical
engines of economic development and job creation. In underserved communities, however, small businesses with low-income and minority owners have for generations had limited access to affordable credit. According to a

study commissioned by the U.S. Small Business Administration (SBA) in 2013
, “the major constraint limiting the growth, expansion, and wealth creation of small firms—especially women- and minority-owned businesses—is inadequate capital.”

CDFIs serve exactly these communities—with great success and economic benefit. In fact, a

2014 report by the Darden School of Business at the University of Virginia
found that despite serving predominately low-income markets, CDFI banks and credit unions had virtually the same level of performance as mainstream financial institutions. Despite
this demonstrated success, CDFIs often lack the capital to meet the needs of many promising small businesses.

In FY 2016 the total funding from applications to the CDFI Fund was four times greater than the resources available. Private sector investments are not enough to address the significant need for small business credit in underserved communities. CDFIs need
access to capital now more than ever. Research shows that
minority and low income-owned businesses typically encounter higher borrowing costs, receive smaller loans and see their loan applications rejected more often
. The CDFI Fund is well-placed to provide struggling small businesses and entrepreneurs in underserved
communities access to affordable credit through microloans.

I urge you to co-sponsor the Investing in America’s Small Businesses Act of 2017. Let’s give small businesses in underserved areas the tools they need to create jobs and develop their communities.

To co-sponsor, or if you have any questions, please contact Lucas Siegmund ( in my office or call 5-7944.




Carolyn B. Maloney
Member of Congress