Build Back Better Act: Small Business Administration Sections
November 23, 2021
Build Back Better Act: Small Business Administration Sections
The Build Back Better Act (BBBA; H.R. 5376), passed by
Americans, Native Hawaiian Organizations, Alaska Native
the House on November 19, 2021, includes 19 sections that
Corporations, and Indian tribes) and management and
would provide a total of more than $5 billion for U.S. Small
training for Native American-owned small businesses.
Business Administration (SBA) programs.
Office of Rural Affairs
Veteran Federal Procurement
Section 100203: $10 million in FY2022, to remain
Entrepreneurship Training Program
available until September 30, 2029—for an annual Rural
Section 100101: $35 million in FY2022, to remain
Small Business Conference, to be held in various regions of
available until September 30, 2030—for competitive grants
the country.
to nonprofit entities to provide training to veteran-owned
small businesses to increase their likelihood of being
Office of Emerging Markets
awarded federal contracts.
Section 100204: $10 million in FY2022, to remain
available until September 30, 2029—to establish an office
Expanding the Surety Bond Program
of emerging markets to enhance the well-being of small
Section 100102: $100 million in FY2022, including $15
businesses in an emerging market as defined in the bill
million for administrative expenses, to remain available
(e.g., located in a low- or moderate-income area for
until September 30, 2031—to increase the guarantee on bid,
purposes of the Community Development Block Grant
performance, and payment surety bonds for small
program, located in a HUBZone, is a startup or is owned
businesses from $6.5 million ($10 million if a federal
and controlled by veterans or individuals with disabilities).
contracting officer certifies that such a guarantee is
necessary) to $10 million ($20 million if a federal
State Trade Expansion Program
contracting officer certifies that such a guarantee is
Section 100205: $31.71 million in FY2023 and in FY2024,
necessary).
with each appropriation to remain available until September
30, 2027—for additional State Trade Expansion Program
Uplift Incubators
grants.
Section 100201: $1 billion in FY2022, including $150
million for administrative expenses, to remain available
Growth Accelerators
until September 30, 2031—to provide competitive grants or
Section 100301: $200 million in FY2022, including $10
contracts to economic development organizations, SBA
million for administrative expenses, to remain available
management and training partner organizations, historically
until September 30, 2031—for additional growth
black colleges and universities, colleges that primarily
accelerator grants. The growth accelerators program is also
educate minority students, and junior or community
provided statutory authorization as the Growth Accelerator
colleges to establish business incubators to assist small
Competition, with awards of at least $100,000.
businesses that are in the planning stages or in business for
not more than five years, small business contractors, or
Emerging Managers Program (Increasing
businesses owned and controlled by one or more members
Equity Investments in the SBIC
of an underrepresented community as defined in the bill
Program)
(e.g., resident of a low-income community as defined in
Section 100401: $20 million in FY2022, to remain
section 45D(e) of the Internal Revenue Code, located in a
available until September 30, 2031—to establish a Small
HUBZone, member of an Indian or Alaska Native tribe) or
Business Investment Company (SBIC) emerging managers
a Native entity. The incubators are to provide a wide range
program for managers that meet at least two of a list of
of management and training assistance, including training
specified criteria, such as having less than 10 years of
to enhance access to capital, help new business owners
combined investment experience, a focus on underserved
become business ready, and help all participants become
markets, or being majority owned by members of an
ready to submit bids for federal contracts.
underserved community. The program encourages specified
investments, including in infrastructure, defined broadly to
Office of Native Affairs
include child and elder care, manufacturing, low-income
Section 100202: $10 million in FY2022, to remain
communities, and small businesses owned by veterans,
available until September 30, 2029—to establish an Office
Native Americans, and individuals with disabilities.
of Native Affairs, which will create and administer a Native
American Outreach Program. The Outreach Program would
Microcap SBIC license
provide information to state, local, and tribal governments
Section 100402: $40 million in FY2022, to remain
about federal assistance available to Native American-
available until September 30, 2031—to establish a
owned small businesses (defined to include Native
Microcap SBIC license for prospective SBIC managers that
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Build Back Better Act: Smal Business Administration Sections
lack required investment experience but would otherwise be
cooperative lending pilot program, including employee-
issued a SBIC license. SBIC leverage to these companies is
owned entities as determined by the SBA Administrator,
limited to $50 million and at least 50% of their investments
without the requirement of a personal or entity guarantee.
must be in the Emerging Managers program’s covered
investments (e.g., infrastructure, manufacturing, low-
Reentry Training for Incarcerated and
income communities). Not more than 33% of those
Formerly Incarcerated Individuals
investments are to be in small business concerns in
Section 100601: $35 million in FY2022, to remain
infrastructure or manufacturing.
available until September 30, 2029—for grants to Small
Business Development Centers (SBDCs), Women Business
SBIC Outreach
Centers (WBCs), and associations formed to pursue matters
Section 100403: $2.5 million in FY2022, to remain
of mutual common concerns to SBDCs and WBCs to
available until September 30, 2031—for a program to
provide entrepreneurship counseling and training to
conduct outreach to, and educate, prospective licensees on
incarcerated individuals completing imprisonment in a
SBIC licensing procedures.
minimum, low, or medium security facility.
Community Advantage Loans
Section 100601: $35 million in FY2022, to remain
Section 100501: $275.9 million in FY2022, to remain
available until September 30, 2029—for grants to SCORE
available until September 30, 2031—for the Community
(formerly known as the Service Corps of Retired
Advantage loan program, including $47.1 million for
Executives) to provide entrepreneurship counseling and
administrative expenses and $4 million for training
training to formerly incarcerated individuals.
community advantage lenders. The Community Advantage
loan program is also provided statutory authorization. At
New Start Entrepreneurial Development
least 60% of community advantage loans must be made to
Program for Formerly Incarcerated
small businesses located in an underserved market as
Individuals
defined in the bill (e.g., located in a low- to moderate-
Section 100602: $35 million in FY2022, to remain
income community, a HUBZone, a rural area). The
available until September 30, 2029—for a pilot program to
maximum loan amount is generally $250,000, but may be
award competitive grants (with a 25% matching
up to $350,000 with SBA approval or if the small business
requirement) to organizations, or partnerships of
is located in a major disaster area.
organizations, to provide entrepreneurial counseling and
training to formerly incarcerated individuals. Legislative
Small Dollar Direct Lending Program
language implies that SBDCs, WBCs, SCORE, and Veteran
Section 100502: $1.9646 billion in FY2022, to remain
Business Outreach Centers may be provided priority. An
available until September 30, 2031, including $484 million
applicant must demonstrate, among other things, that it has
for administrative expenses and $25 million—for outreach
a partnership with, or is, a Microloan intermediary and has
grants, for a direct lending program for loans of up to
the ability to provide a full range of entrepreneurial
$150,000, or not more than $1 million for small
programming.
manufacturers or small government contractors.
SBA Administrative Expenses
Extension of Temporary Fee Reductions Section 100701: $125 million in FY2022, to remain
and Loan Modifications
available until September 30, 2030—for administrative
Section 100503: $950 million in FY2022, to remain
expenses to carry out these programs, except as otherwise
available until September 30, 2026—to (1) extend
provided.
temporary 7(a) and 504/CDC loan guarantee fee reductions
from September 30, 2021, to September 20, 2026; (2)
SBA Office of Inspector General
extend the temporary increase in the 7(a) loan guaranty
Section 100702: $12.5 million in FY2022, to remain
program’s loan guarantee from 75% or 85%, depending on
available until September 30, 2030—for audits,
the loan amount, to 90% regardless of the loan amount from
investigations, and other oversight of these programs.
October 1, 2021, to October 1, 2026; and (3) extend the
temporary increase in the SBAExpress loan guaranty
Robert Jay Dilger, Senior Specialist in American National
program’s maximum loan amount from $500,000 to $1
Government
million from October 1, 2021, to October 1, 2026.
Anthony A. Cilluffo, Analyst in Public Finance
Funding for Cooperatives
IF11980
Section 100504: $100 million in FY2022, to remain
available until September 30, 2031—for a five-year
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Build Back Better Act: Smal Business Administration Sections
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