Dec. 27, 2021—President Biden’s Build Back Better legislation, which includes $2 billion for small businesses, has hit a snag, Inc.com reported.
The bill has already passed in the House of Representatives, but still needs approval from the Senate, which will be hard to do now that Democratic senator Joe Manchin said he would not vote for the bill.
Without Manchin's support, the bill, which included billions for climate change mitigation, an enhanced child tax credit and small business funding among other initiatives, would almost certainly fizzle. Not a single Republican senator has announced support of the bill, which passed the House in November.
Currently, the bill includes a provision that would authorize the Small Business Administration to make direct loans of $150,000 or less to small businesses.
Advocates of the measure saw the SBA's engagement with direct lending as a chance to expand access to capital, especially for underserved entrepreneurs and businesses from disadvantaged communities. Many businesses were sweet on it too--85 percent of small businesses said they support expanding the SBA's authority to dole out direct loans, according to a new survey from the Small Business Majority, an advocacy organization.
