Bill would open SBA microloan funding to Northern Mariana Islands lenders

What does this do?

HR 3496 would amend the SBA Microloan Program to include the Commonwealth of the Northern Mariana Islands, which is currently excluded while other U.S. territories such as Guam are eligible. The program distributes federal funds to approved nonprofit lenders, who then issue small loans, up to $50,000, to entrepreneurs and small business owners. The bill does not alter how the program operates in any other part of the country.

Who does it affect?

Small business owners and entrepreneurs in the Northern Mariana Islands are the primary people affected. Nonprofit lenders based in the CNMI would also be affected, as they would become eligible to apply for participation in the federal program.

Why does it matter?

Adding the CNMI would extend to its residents access to a lending channel that other U.S. territories already have. Nonprofit lenders there could begin applying for federal funds and issuing small loans to local businesses that may not qualify for traditional bank financing.

Where does it stand?