H.R.2831 - Small Business Energy Loan Enhancement Act (119th Congress)
Summary
H.R.2831, the Small Business Energy Loan Enhancement Act, aims to amend the Small Business Investment Act of 1958. The primary change involves increasing the maximum loan amount for specific loans from $5,500,000 to $10,000,000. This adjustment targets energy-related projects undertaken by small businesses.
The bill also mandates the Small Business Administration (SBA) Administrator to submit annual reports to Congress. These reports will detail the industries and geographic areas receiving loans under the amended sections of the Small Business Investment Act.
The bill was introduced in the House of Representatives on April 10, 2025, and referred to the Committee on Small Business.
Expected Effects
The immediate effect of H.R.2831 would be to make larger loans available to small businesses for energy-related projects. This could stimulate investment in renewable energy and energy efficiency.
The annual reports required by the bill would provide transparency regarding the distribution of these loans. This allows Congress to monitor the program's effectiveness and impact.
Ultimately, the bill could lead to increased energy security and reduced reliance on traditional energy sources, depending on the types of projects funded.
Potential Benefits
- Increased access to capital for small businesses in the energy sector.
- Potential for job creation in the renewable energy and energy efficiency industries.
- Stimulation of innovation in energy technologies.
- Enhanced energy security through diversification of energy sources.
- Greater transparency in SBA lending practices through required reporting.
Potential Disadvantages
- Increased risk of loan defaults due to larger loan amounts.
- Potential for inefficient allocation of resources if loans are not properly vetted.
- Possible inflationary pressure due to increased government spending.
- The report requirement adds an administrative burden to the SBA.
- May disproportionately benefit certain geographic areas or industries over others.
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and provide for the general welfare. By supporting small businesses in the energy sector, the bill could be argued to promote economic activity and energy security, both of which fall under the purview of Congress's enumerated powers.
There are no apparent infringements on individual liberties or rights as defined by the Bill of Rights. The bill does not appear to violate any specific constitutional provisions.
However, the Necessary and Proper Clause could be invoked to justify the expansion of loan amounts, as it enables Congress to enact laws necessary to execute its enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).