Hilda Kennedy, the President and Founder of AmPac Tri-State CDC testified at a Senate hearing on the Small Business Administration’s (SBA) implementation of final rules to expand access to capital. The hearing, which took place on April 26, 2023, focused on implementing practices on Affiliation and SBLC/Loan Authorization and oversight, as well as lending in underserved communities, specifically the Community Advantage program and the new Community Advantage SBLC. Here are three key points to know about the hearing and its significance for CDCs:

Importance of Staying Informed

AmPac encourages Community Development Corporations (CDCs) to stay informed of any congressional hearing that could impact the industry. Senate hearings like this one provide an opportunity to hear from industry experts and policymakers about the issues that affect CDCs and the small businesses they serve. Tuning in to these hearings can help CDCs stay informed about changes in legislation and regulation that could impact their work.

Focus on Access to Capital

The Senate hearing focused on the SBA’s implementation of final rules to expand access to capital for small businesses. The last Affiliation and SBLC/Loan Authorization regulations directly impact every CDC. The Affiliation rule, enacted in 2022, changed how the SBA determines affiliation for small businesses applying for loans. The SBLC/Loan Authorization rule, which went into effect in 2023, allows CDCs to increase the size of the loans they can make to small businesses. The hearing allowed industry experts to discuss the impact of these rules and provide feedback on their implementation.

Lending in Underserved Communities

Panel 2 of the hearing focused specifically on lending in underserved communities, including the Community Advantage program and the new Community Advantage SBLC. The Community Advantage program is a loan program designed to provide access to capital for small businesses in underserved communities. The new Community Advantage SBLC is a type of Small Business Lending Company (SBLC) that focuses on providing loans to small businesses in underserved communities. The hearing provided an opportunity to discuss the impact of these programs and the new SBLC rule on lending in underserved communities.

Conclusion

Senate hearings like this provide a significant opportunity for industry experts to discuss the issues that impact CDCs and the small businesses they serve.

The hearing on the SBA’s implementation of final rules to expand access to capital highlighted the importance of staying informed about changes in legislation and regulation that could impact the industry. The hearing also allowed us to discuss the impact of these rules and programs on lending in underserved communities. CDCS needs to stay engaged and informed about changes that could impact their work as the industry continues to evolve.