Microloan bill proposed by New York congresswoman

12/14/2011

New York congresswoman Carolyn Maloney recently introduced a bill to Congress that would ease the process of obtaining a microloan for small businesses, NY Daily News reports.

Known as the "Micro-Biz" bill, Maloney aims to make it easier for startups and small companies to receive business loans of up to $25,000. If passed, the bill would cost the government as much as $30 million per year over the next five years, and allow about 1,000 lenders to make approximately $125 million in small business loans.

"The great recession has made it harder than ever for entrepreneurs to get credit," Maloney said at a press conference, as quoted by the news source. "It's my hope that this 'micro-biz' bill will be a bridge to a brighter economic future."

CPA Practice Advisor points out that Maloney believes beyond benefiting small businesses, the bill would also create jobs as entrepreneurs hire new talent to help them grow.

Microloans helped Tracie Lee and her husband Wayne Surber, owners of Brooklyn-based Lonestar Taco, expand their business and refine pricing Smart Entrepreneur's Resources reports. Both recently spoke in support of the bill.